Union steel ministry has asked the finance ministry to remove the basic customs duty on ferronickel, a key raw material for stainless steel makers, a senior government official said on Tuesday.

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The move will help stainless steel makers to reduce their input cost.

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At present, a 2.5 percent duty is imposed on the imports of ferronickel.

The domestic stainless steel manufacturing industry meets the bulk of its nickel requirements through ferronickel and stainless steel scrap.

Earlier, the government had removed the 2.5 per cent import duty on scrap for a limited period till March 2023.

The government is aware of the challenges the Indian stainless sector is facing. Raw material availability is one of the major challenges in front of the industry, Additional Steel Secretary Rasika Chaube told PTI on the sidelines of the Global Stainless Steel Expo (GSSE) 2022 here.

"We got (zero duty on scrap) extended up to March 23. Second is nickel and chromium. Chromium is in good supply but nickel is not available. We have taken up the matter (to remove duty ferronickel) with the finance ministry because this is a very important raw material for the stainless steel industry," Chaube said.

Such decisions are taken after a lot of considerations by the finance ministry, and the steel ministry can recommend for the same, the official said.

Ferronickel is required for the manufacturing of corrosion-free steel which is used in various sectors like auto, defence, railways and infrastructure.