Online edition of India's National Newspaper
Saturday, Aug 21, 2004

About Us
Contact Us
Business
News: Front Page | National | Tamil Nadu | Andhra Pradesh | Karnataka | Kerala | New Delhi | Other States | International | Opinion | Business | Sport | Miscellaneous |
Advts:
Classifieds | Employment | Obituary |

Business Printer Friendly Page   Send this Article to a Friend

Steel producers' tepid response to duty cut

By Our Staff Correspondent

MUMBAI, AUG. 20. The Central Government's announcement regarding the reduction of import duties has been given a tepid response by the steel industry.

The Indian Steel Alliance (ISA) feels that in the longer run, a protection of a mere 5 per cent will not suffice to protect the domestic steel industry in case international prices take a downturn.

The Government today lowered the import duty on non-alloy steel other than seconds and defectives from 10 per cent to 5 per cent. It has also announced an abolition of the 5 per cent duty, which was applicable on melting scraps for iron and steel other than stainless steel.

Further, the ISA which is alliance of five major steel producing companies — Essar, Jindal, Tata Steel, SAIL and Ispat — stated that the long term solution lies in making more steel available to the country through growth and expansion.

ISA believes that Government should adopt long-term measures such as development and improving infrastructure, making iron ore, gas and good quality coal available and ensuring consistent supply of power to the industry.

UNI reports:

The Executive Vice-President (Commercial), Jindal Stainless, R. K. Goyal, said in the face of rising input costs, the domestic industry would be hit hard as the final product and raw material would attract the same level of customs duty at 5 per cent.

Anticipating the Government move, the alliance had earlier said that any further reduction in import duty on steel would not benefit the customers but would send out a negative message to the stakeholders in the industry. Instead, the ISA feels that the excise duty should be reduced.

The ISA President, Moosa Raza, had said that the customs duty on steel had already reached rock-bottom levels.

Within six months, the Government had reduced the import duty on steel to 10 per cent from 25 per cent. Despite this reduction, domestic steel prices were competitive as compared to imports and lower than what the consumer pays in the U.S., Europe and China, he said and added that "what is required at the moment is reduce the recent increase in excise duty to 8 per cent."

Printer friendly page  
Send this article to Friends by E-Mail

Business

News: Front Page | National | Tamil Nadu | Andhra Pradesh | Karnataka | Kerala | New Delhi | Other States | International | Opinion | Business | Sport | Miscellaneous |
Advts:
Classifieds | Employment | Obituary | Updates: Breaking News |

BL Mumbai Launch


News Update


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | Home |

Copyright 2004, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu