- 24 Jul 2024
- ICICI Securities
Customs duty exempted on 25 critical minerals
MIDHANI - 415 Change: 19.20 (4.85 %)News: Government has proposed to fully exempt customs duties on 25 critical minerals (including rare earth metals) and reduce basic custom duty (BCD) on two of them. Zero duty has been proposed for the following critical minerals include Copper, Gallium, Germanium, Hafnium, Indium, Lithium, Molybdenum, Niobium, Nickel, Potash, REE, Rhenium, Strontium, Tantalum, Tellurium, Tin, Tungsten, Vanadium, Zirconium, Selenium, Cadmium, Silicon other than Quartz & Silicon Dioxide. Currently, the customs duty for these 25 minerals varies between 5-7.5%.
Views: We believe that exemption of custom duty on these 25 critical minerals will reduce overall input costs and would help the domestic industry. These critical minerals are used in sectors like nuclear energy, renewable energy, space, defence, telecom, and high-tech electronics. Mishra Dhatu Nigam (Midhani) is expected to benefit as the company remains a key supplier of nickel-based & cobalt-based super-alloys for defence & space platforms.
Impact: Positive