NEW DELHI: The government does not propose to abolish the import duty on ferro-nickel, a key input for producing alloy and stainless steel, the
Rajya Sabha was informed on Thursday.
In reply to a query, Minister of State for Finance S S Palanimanickam said all ferro-alloys, including ferro-nickel, enjoy a concessional rate of basic customs duty of 5 per cent as against the peak rate of 10 per cent for industrial goods.
Moreover, steel production is dependent on factors such as demand, prices and domestic capacity, and is not determined by imports of ferro-nickel alone, the minister said.
Earlier this month, the Steel Ministry had recommended lowering the import duty on ferro-nickel to 2 per cent to safeguard the interests of domestic stainless steel producers, already reeling under a demand slump.
As stainless steel producers are solely dependent on imports of ferro-nickel, a duty of five per cent on arrival of the raw material in the country was hitting them hard, the Steel Ministry had said.
Stainless steel producers owing allegiance to the Indian Stainless Steel Development Association also wanted the import duty on ferro-nickel to be scrapped.
Source : The Economic Times