The government today deferred decision on a proposal to impose safeguard duty on key steel items by two months, saying the matter needs to be examined further after taking views of the consuming industry.
"We felt that not enough homework had been done and there is a need to consult both the domestic industry and other interested parties concerned.
"We have asked the Directorate General on Safeguards (DGS) to consult the domestic (user) industry and come back to the board after 60 days (with recommendations)," Commerce Secretary G K Pillai told reporters after a meeting of Standing Board on Safeguards. Pillai heads the board.
Safeguard duty is imposed to protect the local industry from surge in imports.
"...There was no urgency to consider the safeguard duty," Steel Secretary P K Rastogi, a member of the board said, adding that the interim proposals of the DGS was found to be "insufficient".
"This was an interim recommendation (of DGS). ...There should be further examination," he said.
When asked if there could an injury to the local industry in view of non-imposition of the safeguard duty, Pillai said, "From evidence we do not see any threat to the industry."
Steel producers, led by Essar Steel and Ispat, had approached the government for immediate imposition of safeguard duty on key steel items.
