 "Budget should enhance capacity utilisation of steel industry: N C Mathur")
Taxes and import duty anomalies are critically affecting the stainless steel sector’s viability. As a result companies are under severe financial stress. To prevent this, import duties need to be rationalised or scrapped, as required. Import duty on SS flat products needs to be increased from 7.5% to 10%. (China has 10% duty, while Brazil imposes 14%).
Abolish import duty on raw materials such as manganese, chrome, and molybdenum ores, hydroxides and other salts to zero from 2.5%. Nickel is not available indigenously; hence duty should be abolished. Duty on coking coal should be abolished from the present 2.5%.
Similarly, duty on iron ore (a primary raw material for steel making) and stainless steel scrap should be reduced to zero from 2.5%. On the other hand, increase the peak rate of basic custom duty from 10% to 25% for the steel sector.
The above measures will help create a level-playing field for domestic steel manufacturers against the Chinese manufacturers who enjoy subsidies and state protection in multiple ways. In addition to this, domestic manufacturers will be able to utilise capacities which are lying idle.
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N C Mathur, President, Indian Stainless Steel Development Association (ISSDA)
Abolish import duty on raw materials such as manganese, chrome, and molybdenum ores, hydroxides and other salts to zero from 2.5%. Nickel is not available indigenously; hence duty should be abolished. Duty on coking coal should be abolished from the present 2.5%.
Similarly, duty on iron ore (a primary raw material for steel making) and stainless steel scrap should be reduced to zero from 2.5%. On the other hand, increase the peak rate of basic custom duty from 10% to 25% for the steel sector.
The above measures will help create a level-playing field for domestic steel manufacturers against the Chinese manufacturers who enjoy subsidies and state protection in multiple ways. In addition to this, domestic manufacturers will be able to utilise capacities which are lying idle.
__________________________________________________________________________________________________________
N C Mathur, President, Indian Stainless Steel Development Association (ISSDA)