The Hindu Business Line : Steel Ministry for ban on HR steel exports

New Delhi, April 15 The Steel Ministry’s game plan to check steel price increases includes proposals like a complete ban on export of hot rolled coil, sheets and plates, and a 10 per cent export duty on cold rolled steel products.

For galvanised and coated steel products, the Ministry has suggested that an export duty of 5 per cent be imposed.

“We have also recommended removal of import duty on steel, which is currently at 5 per cent, as well as abolition of the existing countervailing duty of 14 per cent to zero,” the Minister for Steel, Mr Ram Vilas Paswan, told newspersons here on Tuesday.

If accepted by the Cabinet Committee on Pricing (CCP), this could bring down prices of imported steel by around 19 per cent.

CCP meet postponed

The CCP meeting, which was scheduled for today, was postponed because of internal differences within the Government. The CPP is expected to strike a balance between the proposals forwarded by the Steel Ministry and Finance Ministry’s concern on revenue loss.

Mr Paswan, however, said what his Ministry has recommended would be a revenue neutral model to check prices in which duty reductions would be compensated by additional export duty imposition.

The recommendations include a 15 per cent ad-valorem duty on iron ore exports, he said. To make steel products cheaper, the suggestions also include cut in excise duty from present 14 per cent to 8 per cent, he said.

Meanwhile, the Left parties on Tuesday met the Steel Minister on the pricing issue. Their recommendations include ban on forward trading on steel products for one year, setting up a regulator for the steel sector and a complete ban on high grade iron ore exports.

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