The investigation initiated by the Government of India authority in connection with the cheap imports of low ash metallurgical coke is likely to bring back the confidence of the domestic met coke producers, who have been competing with the cheap imports from China and Australia for past few years.
In a statement issued here, one of the largest met coke players in country, Gujarat NRE Coke Ltd informed that the Directorate General of Anti-Dumping and Allied Duties, Department of Commerce, Ministry of Commerce and Industry, Government of India had initiated the anti-dumping investigation concerning imports of low ash metallurgical coke originating in or exported from China and Australia.
Indian Metallurgical Coke Manufacturers Association (IMCOM), on behalf of the Indian producers namely, Saurashtra Fuels Pvt Ltd, Gujarat NRE Coke Ltd, Carbon Edge Industries Ltd, Bhatia Coke and Energy Ltd and Basudha Udyog Pvt Ltd had filed an application for initiation of anti-dumping investigation and imposition of anti-dumping duty on the imports of alleged dumping of Low Ash Metallurgical Coke originating in or exported from Australia and China.
The domestic industry believes that proper imposition of anti-dumping duty on import of met coke can become a life saver for the otherwise dying domestic industry, Gujarat NRE Coke stated in a statement here.
The company also informed that it has received a notice from ICICI Bank, Offshore Banking Unit regarding allotment of equity shares of the company equivalent to $ 5 million against liability towards corporate guarantee, expressing the gravity of the situation as how the cheap imports have been hurting the local businesses.
"The board of directors of the company shall discuss and proceed for allotment of equity shares at a minimum price of Rs 10 per share after getting all requisite approvals in the matter," it stated.
The domestic metallurgical coke industry has been suffering for over last few years due to excessive dumping of met coke by China. The cheap imports from China have increased exponentially by over 5 times in last few years and is today reaching India at a price which is much lower than the cost of production of met coke.
"I am confident that with the latest developments we would very soon be able to achieve stability," said Arun Kumar Jagatramka, CMD, Gujarat NRE Coke.