India must re-evaluate FTAs with Japan, Korea: Essar

Essar Group today said that India needs to re-evaluate free-trade agreements with many countries, including Japan and Korea, that are hurting domestic steel manufacturers by allowing duty-free imports.
"It will be in interest of the industry to re-evaluate the free-trade agreements we have with Japan, Korea and Thailand that are permitting duty free imports and are hurting the domestic steel producers," Essar Group Director Prashant Ruia said while addressing a conference here.
He further said that imposition of safeguard duties and the anti-dumping measures has given a lifeline to steel sector which was struggling due to onslaught of unfair dumping.

"We are thankful to the government for timely support in reviving the sector. The imposition of safeguard duties and the anti-dumping measures are all steps in the right direction taken in a timely manner," Ruia said.
Following Indian footsteps, he said, many other nations like the US, and Europe have also taken similar steps to protect their domestic steel industry.
"However, we needto evaluate these measures onpar with what other steel producing countries are doing. And we must ask ourselves if we are doing enough," he said.

He also urged the government to come out with a policy that makes usage of Indian steel mandatory for all government projects.

"Further,the government has announced several large infrastructure projects. I urge you (steel minister) to come out with a policy that makes usage of Indian steel mandatory for all government projects, like the 'Buy America Program' in the US to further encourage demand growth in the sector," Ruia said.
He further said there were some serious legacy issues that were impactingthegrowth ofoursteel sector.
Due to transparency and proactive steps of thecurrentgovernment in allocating natural resources, some of theseissues were getting addressed for the futurelong term interest of the sector.
He also said it was important to complete all stranded projects on war footing across sectors to give a further boost to domestic steel demand.

"A lotofinvestmentshave beenmadein these projects and not completing them isa huge national loss," he said.
It is important to have a long term stable policy regime that will help renew confidence in the sector and provide comfort to new investors with a view to encouragesignificant investments needed in the sector, he said.
"Any newsteelproject will take 5-7 years to complete and if we don't startinvestment programmeover the next couple of years, we will stareat a serious shortage of steel,since,at the current level of growthof 6-7 per cent, the current capacities will get completely utilised in the next three to five years," he added.