BL reported that the steel industry is disappointed that import duty on steel was not raised to 15% as recommended by the Ministry.
Mr Vinod Mittal vice CMD of Ispat Industries said that “Despite being an interim budget, because of the current extraordinary situation the industry and economy is currently passing through, the steel industry was expecting a set of measures aimed at reviving demand for steel and controlling dumping of steel products from a host of foreign countries.”
Mr Mittal said that the budget was a good opportunity for the government to announce major initiatives in this direction, adding that many countries have already announced stimulus packages to the tune of hundreds of billions of dollars to save employment and revive demand.
He said that “I hope the over INR 60,000 crore spending plan for construction of rural roads, irrigation and other infrastructural projects in rural areas under the Bharat Nirman and other Centrally-sponsored projects would help generate additional demand for steel.”
According to Mr Vikram Amin executive director of Essar Steel, since this was a vote on account, nothing much could be expected. He said that “Steel industry has been seeking import duty to deter countries from dumping their goods in India and it will also insulate Indian companies from unfair trade practices. The government can impose this duty during the course of the year by a notification.”
Mr NC Mathur director Corporate Affairs of Jindal Stainless said that in the current economic situation, the Government could have at least given some relief to the steel industry.
Mr Mathur said that the import duty, which is currently at 5%, can be taken to a peak rate of 7.5% to 10% after which it would need Parliamentary approval. He said that “Increasing it marginally could have been good indication, but the Government decided not to touch it.”
Source : Business Line