Steel industry disappointed over no curbs on exports

Mumbai: The steel industry though disappointed that no curbs were imposed on iron ore exports welcomed excise duty cuts in general and said it stood to benefit the industry indirectly.

Mr K. Roongta, Chairman, SAIL, said higher outlays for Bharat Nirman, irrigation projects, mega power projects and rural housing will help in infrastructure development and, together with excise duty cut for auto sector, will spur demand for steel.

Reduction in Cenvat from 16 per cent to 14 per cent will also help in containing the cost of steel, especially for construction purposes. Customs duty reduction on project imports will have a favourable impact on capital costs at a time when the industry is undergoing massive expansion.

‘big boost’:

Mr Sajjan Jindal, Vice-Chairman and Managing Director of JSW Steel, said, “Although, there is a little disappointment for not meeting the concerns on iron ore conservation, the taxes imposed on chrome-ore export were a long-pending demand. The step towards setting up a coal regulator is also in a positive direction.”

“The across-the-board cut on excise duty will also make consumer durables, buses, cars, three wheelers and two wheelers cheaper, which in turn is expected to give a big boost to the demand for steel. JSW will also pass on the 2 per cent cut in excise duty to customers,” added Mr Seshagiri Rao, Director-Finance, JSW.

The custom duty on scrap, which was 5 per cent has been totally done away with and will definitely help the steel makers using the electric arc furnace route. The cut in duty in project imports from 7.5 per cent to 5 per cent will also reduce the current cost for the steel industry, he said.

Mr Vinod Mittal, Managing Director, Ispat Industries Ltd, welcomed the move to reduce the import duty on steel melting scrap saying that it would marginally help offset the major cost push the industry was facing.