Increase import duty on steel: Punjab industry

The Punjab steel industry has sought a 15 per cent increase in the import duty on finished products, besides allowing deemed credit on scrap, in the coming Budget.

The state industry has further demanded the introduction of "freight equalisation scheme" in order to nullify the adverse effect of being located far from the ports.

"To save the Punjab steel industry, the government should raise the import duty on finished steel including TMT, angles, round and flat products from 5 per cent to 20 per cent," President All India Steel Re-Rollers Association Vinod Vashisht said here. The availability of finished steel at a cheaper rate through import had put the future of the state steel industry in jeopardy, steel manufacturers said.

Urging for disbursement of deemed credit, steel producers have stated the government should allow them the deemed credit at a rate of 16 per cent on scrap.

"Whatever scrap we collect from SSI units such as bicycle industry for using as input, the excise duty on it is already paid at some stage. But we do not get any credit on the same, which should be allowed," President, north India Induction Furnace Association K K Garg said.

The Punjab steel industry is also suffering because of geographical disadvantage as it has to pay heavy freight charges for bringing input from various sea ports of the country, he said.