Demand for package for steel sector referred to FinMin

Demand for a comprehensive package for helping the domestic steel industry has been referred to the Department of Financial Services, Union Minister Vishnu Deo Sai said today.
However, the government is not preparing any bail-out package for the steel industry, which is going through a severe downturn, the Minister of State for Steel and Mines told Rajya Sabha in a written reply.
"Government is not preparing a bail-out for the steel sector. However, representations received from Indian Chamber of Commerce and India Steel Association to consider working out a suitable comprehensive package have been sent to the Department of Financial Services," he added.

Stating that the domestic industry is going through a "severe downturn", the minister said globally demand slowdown and overcapacity has led to historically low international steel prices and surge in cheap imports in India, which has resulted in decline of domestic steel prices.
"Lower prices have led to erosion of profit margins and lower sales realisations," Sai said.
To alleviate the problems being faced by the domestic steel firms, the government has taken several measures.

For reducing stress in the steel sector, the Reserve Bank has extended the 5/25 scheme in July 2015, whereby longer amortisation period for loans to projects in infrastructure and core industries sector has been allowed, he added.

Government also increased the peak rate of basic customs duty on flat and non-flat steel to 15 per cent from 10 per cent, Sai said.
It has also imposed several counter measures such as minimum import price, safeguard duty, anti dumping duty to check cheap imports.