Steel industry calls for higher import duty, CVED

As the government gears up to formalise another dose of stimulus package to boost demand, steel industry has come out with a wish-list which includes hike in import duty and imposition of countervailing duty to check cheap overseas arrivals of the commodity.

State-run SAIL chief S K Roongta has represented the industry's concern to the government and asked for imposition of additional 10 per cent import duty on steel items, apart from 10 per cent CVED on TMT bars and a special additional duty of four per cent to protect domestic industry.

On the face of global economic slowdown, steel companies from countries like China and Ukraine started routing their piled up stocks in India in bulk quantities, which prompted domestic manufacturers to call for imposition of import duty.

The government levied five per cent import duty on steel products, which the industry branded as "inadequate" to check "dumping" of the commodity in the domestic market as they asked for more.

"Five per cent import duty is inadequate to check cheaper steel items being dumped in the country. The government should levy at least 20 per cent import duty among other measures as part of its package," said an Ispat Industry official.

Steel demand from infrastructure and automobile industry declined as they were hit by the global economic downturn and liquidity crunch in the market. The package is expected to infuse growth in ailing sectors to increase steel offtake.

"The government should further cut the excise duty, apart from abolishing Central Sales Tax on steel. RBI should take steps to infuse liquidity into the system thereby easing credit availability for steel consuming sectors," said Jindal Steel and Power Director Sushil Maroo.