The Hindu Business Line : Steel-makers open to reduce prices, if excise duty lowered: ISA

NEW DELHI: The battle over rising steel prices on Monday took a new turn with the steel makers extending an olive branch to the government saying they will reduce prices provided excise duty on the alloy was brought down to a reasonable level and the sam e will be passed on to consumers.

"We are also sensitive to pricing issue. We suggest that the Government should lower excise duty on the alloy to about 6 per cent from the current 12 per cent and we will duly reduce prices and pass it on to the consumers," Mr Moosa Raza, President, Indi an Steel Alliance (ISA) said.

The ISA, which is an umbrella organisation of major steel producers, have recently written to the Prime Minister Mr Manmohan Singh opposing Steel Minister, Mr Ram Vilas Paswan's suggestion of setting up a regulator in the sector, which among other things would routinely monitor steel prices.

"We are even open to the Government mandating us to reduce prices in the eventuality of excise duty being reduced. But the Government will also have to simultaneously address the contentious issue of rising iron ore prices and allocating captive ore mine s to the steel producers," Mr Raza pointed out.

He pointed out that prices have been increasing due to unprecedented rise in input costs and cited that prices of iron ore have risen by 2.5 per cent to about Rs 13,000 per tonne, coking coal by 3.2 times, natural gas by 3 times and that of thermal coal by as many times since April 2007.

"The Government will have to contain the galloping exports of iron ore, which is projected at 105 million tonnes this year, up by 13 per cent, as compared to last year. We are not seeking an outright ban on exports, but are suggesting that exports be tap ered off in tandem with the growth of the domestic steel industry," Mr Raza said. - PTI

Prev: Thomas Cook announces book closure for dividend
Next: Chilli output may miss target, prices likely to soar

Business Line | NUS Index |