IRON ORE TRADING BUSINESS PLAN
The Iron Ore trading business will consist of only supply of iron ore to the domestic plants as well as for exports from India. That means, the supply of iron ore to Domestic plants will attarct the sales tax and the iron ore for exports will attract Government Duty @20%.
The Investment required is minimum Rs.35 Cr.
Iron Ore Quality: Fe Content 63.5%
The business plan mention below is for approax coasting of High Grade Iron Ore exports from India.
Projection and Implementations
1Rs.=US$ 44.5 (as counted below
1. Material Cost @Rs.2100/MT = Rs.10.5 Cr
2. Transportation Cost @Rs.2600/MT = Rs.13 Cr
3. Wastage and Spillage @Rs.100/MT = Rs.50 Lakhs
4. Port Charges @Rs225/MT = Rs.1.125 Cr
5. Moisture @Rs.100/MT = Rs.50 Lakhs
6. Gov Duty @20% of FOB Value = Rs.5.125 Cr (@Rs.1024)
The above costing is approax and can change as per the actual prevailing market.
The Material Cost includes the royalty fees.
Form ‘H’ has to be presented against the Invoices to wave out the sales tax / VAT