| Steel Minister Ram Vilas Paswan said today.the usual alibi given by steel makers for raising the prices was an increase in rates globally. |
| "We will meet the steel companies within a week to seek a justification for frequent price hikes. If it's not justified, we will ask them to cut prices," |
| "The per capita steel consumption of 45 kgs in the country is much lower compared to that in most developed nations. Prices should be reasonable to increase our consumption", the minister said. |
| The cement industry had also drawn the same reactions from the government when they increased prices after last year's Budget. The government had then termed the hikes unwarranted. |
| Paswan, however, gave the steel industry something to cheer about by saying that the ministry has proposed reduction in import duties of some critical inputs consumed by the steel producers. |
| The ministry has proposed reduction in customs duty of iron ore from the current level of two per cent for the next budget. It has also proposed complete abolition of custom duties on coking coal and scrap. |
| Currently, coking coal attracts a duty of five per cent while scrap has a duty of three per cent. Exuding confidence that the steel sector was moving forward, Paswan pointed out that if the capacity-expansions announced by the steel major fructify in time, India was likely to have a steel production of around 124 million tonnes (mt) by 2012 and 275 mt by 2019-20. |
| He said steel demand was likely to grow 10 per cent in the next few years. The Planning Commission's Working Group on steel has projected a demand of 70.34 mt for finished steel and 80.23 mt for crude steel by the end of the 11th Plan. |
| According to a steel ministry note, the country is likely to rope in investment to the tune of Rs 2,76,880 crore by 2012 and Rs 8,70,640 crore by 2020 in the sector. |
| On the contentious issue of iron ore export, Paswan said ore export should only be allowed after meeting the domestic requirement. |
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