JSW Steel gets exemption to import key raw material despite curbs

jsw steel

The Centre has allowed JSW Steel to import low ash metallurgical coke (metcoke) from Indonesia, overriding recent government restrictions aimed at shielding domestic industry, people familiar with the matter told Moneycontrol.

The move comes after the second largest steelmaker moved the Delhi High court seeking relief against the restrictions. The Delhi High Court dismissed the case on March 28,  but the Directorate General of Foreign Trade (DGFT) gave its permission to the company, according to sources.

The company has been allowed to import 1.06 lakh metric tonnes of metcoke from Indonesia, the sources said.

The quantity is above the quota set for Indonesia.

As per the latest DGTR (Directorate General of Trade Remedies) notification, the overall quantitative restriction (QR) for LAM Coke imports is 14.4 lakh metric tonnes for the first half of 2025. Specifically, for Indonesia, the import limit has been set at 33,182 metric tonnes per quarter, totalling 66,364 metric tonnes for the January–June 2025 period.

The permission was granted because the original quota was for a country they  JSW Steel couldn’t source from, prompting authorities to permit a switch to Indonesia upon request, said a person familiar with the matter. "The total import is still within the 14 lakh tonne limit, so there’s no breach of the quantitative restriction," the source added.

A similar arrangement was done for ArcelorMittal Nippon Steel India, wherein the government agreed to divert an existing import quota of 88,000 MT of met coke from Russia to Poland, Moneycontrol had reported on April 14.

JSW Steel and  the Department of General and Foreign Trade (DGFT) did not immediately respond to requests for a comment.

Met coke is a critical raw material used as a reducing agent and fuel in blast furnaces during steelmaking, and helps convert iron ore into molten iron, making it essential for integrated steel plants.

Starting from January, India imposed a ban on unrestricted imports of low-ash metallurgical coke (met coke), introducing country-specific quotas to safeguard domestic producers. The curbs are expected to be in place till June 30, 2025.

JSW Steel and its entity Amba River Coke Ltd. (ARCL) had placed orders for 3,40,000 metric tonnes of low-ash metallurgical (LAM) coke through contracts signed on November 26 and December 3, 2024, and backed them with Irrevocable Letters of Credit (ICLCs) executed on December 4, 2024. However, as the curbs were announced on December 26, the steelmaker applied to the DGFT to register these ICLCs for the full quantity under Clause 1.05 (b) of the Foreign Trade Policy, according to a court filing seen by Moneycontrol.

The clause allows such parties to honour prior commitments made before the imposition of new restrictions. However DGFT rejected their application on Feb 6.  While their ICLC applications were still under review, JSW and ARCL imported around 1,03,312 metric tonnes of LAM Coke, expecting that the DGFT would approve the registrations under the Foreign Trade Policy, according to the filing.

The company's petition, which was filed on February 11, was dismissed by the court on March 28, according to details shown on the Delhi High Court website.