Tough week ahead for India steel makers

21/04/2008 12:00 - 820 Views

PTI reported that India’s steel ministry has recommended banning export of finished steel and hiking duty on iron ore export to the Cabinet Committee on Prices, which would be chaired by Dr Manmohan Singh on April 15th 2008.

Mr Ram Vilas Paswan union steel minister told reporters that “We have recommended a ban on exports of finished steel products completely. This recommendation has gone from my Ministry to the Government.”

Mr Paswan said that other recommendations of steel ministry sent to the CCP include

1. Cut in excise duty on steel from 14% to 8%

2. Abolishing import duty and countervailing duty on steel products

3. Imposing 15% duty on export of iron ore

He also warned that even after these measures, if steel producers do not rein in exports and reduce prices, then the Government will resort to bringing steel under the Essential Commodities Act. He said “But we do not want to go to such an extent. We hope the industry will act responsibly.”

Indian government has so far taken following initiatives in steel sector to control inflation in the country.

1. Withdrawal of export incentives on steel products

2. Reduction in excise duty from 16% to 14%

3. Abolished of import duty on scrap

During the coming week many more measures are likely to come.

April 16, 2008

Source: steelguru.com