The cold rolling industry and the manufacturing sector have urged the Centre to provide for a “differential duty” regime to promote domestic industry, including the manufacturing sector, and conserve foreign exchange, besides generating additional employment.

In a representation to the Government, the industry sought a “rational” decision in the overall national interest in this regard, according to a press release here on Thursday.

India has surplus capacity of 3 million tonnes in the integrated and secondary sector but massive imports of 1.7 million tonnes of cold rolled coils and sheets in 2014-15 resulted in the closure of 14 domestic units due to uniform rate of custom duty on the imports of hot rolled (HR) coil, which is the basic input intermediate product accounting for 70% of the production cost and the finished product, i.e., cold rolled coils/sheets.

Besides, the domestic prices of HR coils in India, fixed on the landed cost basis, (including the ocean freight, port charges , custom duty etc.) are higher by around $ 80 (Rs 5,150) a tonne vis-a-vis the global prices at which the Indian producers are exporting HR coils. The differential rate of custom duty on intermediates and finished product is a universal practice and also applicable in India to a wide range of products including aluminium, copper, edible oils etc.

"The national industrial policy also stipulates value addition by the indigenous producers to promote domestic industry, conserve foreign exchange and generate additional employment. A higher rate of duty on the imports of cold rolled coils/ sheets is also essential as the foreign Governments, including China, extend a higher incentive of 3 to 4% on the export of cold rolled coils / sheets vis a vis the HR coils, to promote the export of value added products" said S C Mathur, Executive Director, Cold Rolled Steel Manufacturers Association of India.

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Published on July 9, 2015