The Directorate General of Safeguards (DGS) has recommended continuing restrictive duties of up to 20 per cent on some steel products till March 31, 2018, to protect the domestic industry from flooding of cheap dumping from nations like China.
The government, in September last year, had imposed a provisional safeguard duty on import of some steel products for 200 days and last month, set a minimum floor price on imports to deter countries like China from undercutting the local industry.
DGS, under the finance ministry, recommended a 20 per cent ad valorem safeguard duty in the first year from September 14, 2015 to September 13, 2016 on hot-rolled flat products of non-alloy and other alloy steel in coils of 600 mm width or more.
It suggested an 18 per cent duty in the first half of second year and 15 per cent in the second half of that year. For the first six months of the the third year from September 14, 2017 to March 13, 2018, it recommended 10 per cent anti-dumping duty.
The increased imports of 'hot-rolled flat products of non-alloy and other alloy steel in coils of a width of 600 mm or more' into India "have caused serious injury and are threatening to cause serious injuries to domestic producers".
"It has been observed that the position of the domestic industry further deteriorated on account of production, sales and market share," it said, adding that "further protection" to the domestic industry is required to be extended.
It will be "in the public interest" to impose safeguard duty on such imports for a period of two and half years.
Considering the average cost of sales of the said steel products by the domestic producer after allowing a reasonable return on cost of sales, safeguard duty has been suggested, it added.
"As the imports from developing nations except China and Ukraine do not exceed 3 per cent individually and 9 per cent collectively, the import of product under consideration originating from developing nations except China and Ukraine will not attract safeguard duty," it said.
Also, imports of the product originating from Turkey will not attract safeguard duty with effect from February 2, 2016.
In the changed scenario, the state has to prepare
itself and update ways and means to get desired results, the minister said adding that Odisha has been the first state in the country to auction an iron ore mineral block which was successfully concluded in March, 2016 with one of the integrated steel plants of the country emerging as the preferred bidder.
"Subsequently, we are also preparing more than 10 iron ore blocks to be put to auction during 2016-17 and 2017-18, which will adequately cater to the raw material requirement of the steel industries in the country as a whole," he said.
The Minister said the state has been pursuing a vision of creating a congenial business climate to attract investment in mineral-based industry and infrastructure projects, thereby raising raising income, employment and economic growth.
"We must ensure all activities to take place in environment-friendly manner with due attention to environment management," he said, adding that the new directorate will exclusively look after issues surrounding this sector.
The Directorate of Steel will be instrumental in realising all aspirations relating to the systematic development of iron ore and steel sector in the state, he said, adding that it will also facilitate quick and effective solutions for the investors.
Special Secretary, Steel & Mines, P K Mishra has been appointed as the Director of the Directorate of Steel.
