At present, a duty of up to 15 per cent is levied on export of most of the long steel products even if these are manufactured from raw materials imported under the Advance Licence Scheme (ALS).

The ALS envisages certain export commitment from steel producers in lieu of availing duty-free import of inputs for steel making.

According to sources, the Revenue Department has approved the Steel Ministry's proposal of introducing a scheme of duty free export of steel products made from raw materials imported under ALS.

"The Revenue Department has in-principle approved the proposal, which we had mooted during the meeting of the Committee of Secretaries to review essential commodity prices on May 30," a senior official in the Steel Ministry said.

Though the Revenue Department has worked out the modalities for operationalising such an exemption, it wants certain criteria to be fulfilled by exporters seeking such benefits.