The Hindu : Domestic steel producers upset over duty cut

Online edition of India's National Newspaper
Wednesday, Feb 25, 2004

Business

Business

Domestic steel producers upset over duty cut

NEW DELHI, FEB. 24. Domestic steel producers today severely criticised the Government over 5 per cent duty cut on imports of steel products terming it as an `uncompetitive' measure even as steel PSU SAIL welcomed the move saying it would help stem price volatility.

"The latest move by the Government will render domestic producers uncompetitive at a time when the steel industry is booming the world over,'' Ispat spokesperson, Goerge Thomas, told PTI. The SAIL Chairman, V. S. Jain, said the cut would bring in stability in the highly volatile domestic market. "Our operations are not going to be affected much by the cut,'' Mr. Jain said.

The resident director of Essar, J. Mehra, lamented at government decision saying it would not provide any solution to problems of the domestic industry which was already suffering high costs of inputs.

"Solution to problem lies in bringing down excise duty of 16 per cent on the construction sector,'' he said, adding that worldwide prices were going up because of market forces.

Mr. Thomas said there was no justification for cutting import duty at a time when input costs had gone up by 300 per cent.

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