New steel policy: Govt panel addresses stakeholders' concerns

A standing committee headed by the steel secretary on Tuesday sought to iron out a host of issues raised by various stakeholders, including the ministry of railways, Oil and Natural Gas Corporation (ONGC), and Indian Pipe Manufacturers Association (IPMA).

The ministry of railways sought exclusion of rail from the list of iron and steel products, which was turned down by the panel on the grounds that even though rail is produced through complex and specialised processes, it has to meet certain specified quality and performance criteria.

State-owned ONGC asked whether mother pipe as input was eligible for procurement under the new policy by carrying out certain activities such as welding the connectors. The committee responded by saying that all kinds of pipes and tubes have been defined as a finished product and therefore mother pipe cannot be considered as an input material. The value addition has to be shown in manufacturing of mother pipe.

To a query raised by IPMA, the panel said the imported steel would have all the taxes and duties included which are borne by the importer, to bring the material to the plant.

The central government recently approved a policy for providing preference to domestically manufactured iron and steel products in government procurement and notified the same on May 8. 

The policy mandates to provide preference to domestically manufactured iron and steel products in government procurement in which a minimum value addition of 15 per cent have taken place domestically.