| Date: |
26-02-2015 |
| Subject: |
Steel sector wants duty hike on steel imports, sharper focus on construction sector |
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VISAKHAPATNAM: While the central government has been emphasising on 'Make in India' during the last few months, members of the steel industry have expressed the need for increasing import duties on steel products in the upcoming budget to curb Chinese dumping and provide a level-playing field for domestic players. At the same time, steel sector players want the Union Budget to sharpen focus on construction and remove hurdles in the mining sector to boost the prospects of the country's steel sector.
"We want the finance minister to come up with export incentives to increase exports to African, South East Asian and South Asian countries and increase customs duty on steel imports, especially rebar and wire rod products to prevent the Chinese from dumping their products here. Steel imports from China have almost doubled from four million tonnes per month to eight million tonnes per month in recent times, adversely affecting the domestic steel manufacturers," said Rashtriya Ispat Nigam Limited (RINL) director (commercial) T K Chand said.
Apart from the Union Budget announcing measures to boost the construction sector, which in turn will spur steel sales, he called for a hike in income tax exemptions on housing loans as it will help the middle class and promote the demand for housing sector. "The steel sector will invariably benefit from the move," he said.
Confederation of Indian Industry Vizag zone chairman Neeraj Sarda called for measures to lift the steel industry out of the doldrums. "The steel industry is being hammered from all sides. The mining sector is going through a very bad phase due to various bans and right now it is very crucial for the central government to support the steel industries. Import duties, especially on generic steel, have to be increased."
He also pointed out that a waiver of import duties on all raw materials required for the steel sector, including iron ore, coking coal, limestone and dolomite, will also help the industry.
Steel Exchange India Limited managing director B Suresh Kumar said he was looking forward to special status and special tax incentives for AP. "It was promise made in the Parliament last year and it has to come through if we have to move forward. Special tax incentives to AP will lead to new investments in the state, which in turn will lead to a renewed demand for steel."
Apart from this, he said the budget should focus on providing sops to infrastructure projects, which too will go a long way in reviving the steel sector. "The FM should also provide interest rate rebates and improve funding for the core sector, including the steel industry."
Source : timesofindia.indiatimes.com
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