 "Safeguard duty extension, an anti-SME move : EEPC")
Engineering Export Promotion Council (EEPC), the apex body for small and medium enterprises (SMEs) in engineering exports, termed extension of safeguard duty on steel as an "anti-SME move".
The Ministry of Finance on Wednesday extended safeguard duty on steel for two years. Levied initially in September 2015 for 200 days, the safeguard duty on certain grades of steel for specific use has been extended for two years and levied upto 20 per cent.
"Engineering exporters are the major users of steel. The extension in safeguard duty would dent the country's exports, already down in the dumps. We feel this is a completely discriminatory judgement and does not take into account the impact of the negative effect the continuation of the safeguard duty will have on the global competitiveness of user industries," Chairman of EEPC India, T S Bhasin said in a statement.
Steel producers had welcomed the government's move. The Steel Ministry itself has taken note of the fall in steel imports by almost one-fourth in April-February period of the fiscal 2016-17.
The continuation of the safeguard duty not only makes engineering exports uncompetitive, but also there is no specific reason for the levy on HR Coils, which is a basic raw material for engineering products, especially when MIP has already been slapped.
"While a huge level of protection is being given to the steel units, including those in the large sector, there are reports about further package to them. We have no problem with that but let protection to the one sector not spell death knell for the user industries, which are also battling the global slowdown and domestic demand compression," EEPC India said.