Minimum import price, tariff barriers can curb steel imports: JSPL

90% of the sponge iron plants have shut down, throwing thousands of people out of employment

Fixation of a minimum import price and imposition of WTO compliant tariff barriers can help curb the spate of cheap steel imports into the country from China, Japan and Korea, a top official from Jindal Steel & Power Ltd (JSPL) said here today.

"The steel industry is passing through a very difficult phase with most of the steel units running into losses. There is dumping of steel into the country by China, Japan and Korea. The domestic steel producers have made representation to the Government of India on the crisis and we are hopeful that the government will take necessary action", Naveen Jindal, chairman of JSPL told reporters after meeting the state chief secretary Aditya Padhee.

Jindal said many steel plants have invested heavily on their projects in Odisha but most of them were incurring losses. Moreover, 90 per cent of the sponge iron plants have shut down, throwing thousands of people out of employment.

"The state government needs to step in by enhancing availability of iron ore and coal. Besides this, the iron ore duty structure needs to be rationalised. Presently, the duty of high grade lumps is applied even on low grade iron ore fines. This should change", he suggested.

Jindal also pointed to the exorbitant water cess and the levy to the Water Conservation Fund which the steel industries were not in a position to pay.

Commenting on auctions of an iron ore block notified by the state government, he said "This is a welcome step. But so far, only one block has been notified. More iron ore blocks need to be notified for auctions."

JSPL would bid for the auctioned blocks depending on suitability, he said.

The JSPL chairman said the company was committed to expansion of the Angul steel plant. "The first phase of the Angul plant is completed. The plant capacity would be expanded to 3.5 million tonne per annum (mtpa) by the end of 2016 and six mtpa by March 2018", he informed.