In order to tackle the effects of global financial crisis in the steel sector, India Government has withdrawn all export duties on steel, reintroduced Duty Entitlement Pass Book benefits and imposed 5% import duty on iron and steel items. Hot Rolled Steel has also been brought under restricted category under Indian Trade Clarification Harmonized System of Coding, so as to regulate its cheap imports.
The key measures are summarized below:
1. Export duty on steel products withdrawn since October 31st 2008
2 Import duty on steel products re-imposed at 5% from November 18th 2008
3. DEPB on steel items reintroduced since November 14th 2008
4. HR Coil brought under Restricted Category to regulate its imports.
5. Export duty in iron ore fines amended to INR 200 per tonne with effect from October 31st 2008 and further to 8% advalorem with effect from November 7th 2008. The export duty on iron ore fines was subsequently withdrawn whereas export duty on all other varieties of iron ore was reduced to 5% advalorem with effect from December 7th 2008.
To address the likely problems arising out of the global melt down, 5 task forces coordinated by SAIL, have been set up to monitor production, ongoing modernization projects in SAIL, procurement of raw materials, monitoring import of coal and logistics and financial management. These task forces are expected to help the PSUs in formulating strategies consistent with the existing market conditions.
Source : SteelGuru