Investment of over Rs 35000 cr may be put on hold by industry Finance minister P Chidambaram's move to retain 5 per cent duty on export of pellets has deeply disappointed the iron ore mining industry. The industry, which was expecting duty withdrawal in the interim budget 2014-15, said the industry might consider closing down existing units and put on hold investment to the tune of over Rs 35,000 crore. "We had submitted our memorandum to the finance minister requesting for withdrawal of 5 per cent export duty on pellets. But he chose not to remove duty and it will be a big disaster for the mining sector. Pellet plants are already operating at 50 per cent of their capacities and the duty structure will further make their operation uneconomical," said R K Sharma, secretary general, Federation of Indian Mineral Industries (FIMI). He said the industry is currently in the process of making an investment worth over Rs 35000 crore and many new units under construction may have to stop as it will not be viable to produce and export pellets. "There is not much demand for pellets in India and it will not be feasible to export paying duties. Our margins will go towards paying for the duty," Sharma said.