Government may put safeguard duty on steel import

Decision regarding imposition of safeguard duty on import of steel will not be delayed if the Directorate General of Safeguards recommends restrictive duty, Revenue Secretary Shaktikanta Das said today.

Indian steel industry has been hit hard due to cheap import of the metal from China and devaluation of Yuan has further aggravated the situation.

While the government increased import duty on steel by 2.5 per cent last week, some industry players have approached Directorate General of Safeguards for imposition of safeguard duty on the import.

"Already in steel, as far as I know, some applications have been filed and those are under consideration of DG Safeguards. He has to examine the applications. They will be examined very expeditiously.

"There will not be any delay in this matter and as soon as a report comes (from DG Safeguards), the government will take a decision on this matter," Das told reporters on the sidelines of a PHD function here.

The secretary further said that safeguard duty is not related to some other country's currency devaluation and is linked to a sudden surge in import.

When asked if there is a case for safeguard duty, Das said he cannot pass a judgement.

"DG Safeguards is the competent authority. He has to examine the entire matter based on statistical evidence. Once the DG concludes the investigation and gives the report, then only government will take a decision," he said.

Speaking about market fall today, Das said "global market today is in turmoil. There are multiples of factors which are responsible and most of the factors are external to India. Companies across the globe are not doing well. You have economies across the globe that are not doing well, exports are slowing down in many countries."

India presents far better picture and much more positive picture as compared to other countries, he added.

"Therefore, in global arena if you look at it, the only limited number of bright spots that we have in India are certainly in forefront," he said.

While addressing the International Tax Conference, Das said black money law is not revenue mobilisation exercise for the government.

"The law is not intended at revenue mobilisation measure," he said, adding, that the government has made huge commitments to fight the menace of black money.