The Hindu Business Line : Steel industry pitches for 15% import duty, revival of DEPB facilities

New Delhi, Oct 17 Faced with falling steel prices and rising imports, the major steel producers today urged the Steel Ministry to impose 15 per cent import duty on hot rolled steel, revive DEPB benefits on exports, set a floor price and cut excise duty from 14.4 per cent to 8 per cent.

Fixing an import floor price of $800/tonne and removal of export duty was also recommended. Floor price on imports was removed three years back.

In a meeting chaired by the Union Steel Minister, Mr Ram Vilas Paswan, the industry also urged for imposing countervailing duty on steel imports.

Since the steel industry is undergoing a downturn, the industry needs support to complete its brown field expansions in a time bound range in order to build up the projected 124 million tonnes capacity by 2011-12, the Minister said.

Mr Paswan also said the industry has assured that if necessary duty adjustments are put in place the companies will hold the current price level for the next six months even if international prices go up.

Tata Steel Managing Director, Mr B. Muthuraman, pointed out that “in the context of the present economic situation even if the proposed duty changes are undertaken we do not expect prices to go up.”

Stating that steel manufacturers are not planning to cut production, Mr Muthuraman said, “today there are problems in getting loans but still we do not want to stop expansion.”

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