EU launches subsidy investigation over Indian iron pipes

The probe will ascertain whether Indian exporters of ductile cast iron pipes receive trade-distorting govt aid, thus harming the business of foreign companies like Saint-Gobain

The European Commission said on Wednesday it had launched an investigation into alleged illegal subsidies supporting imports of tubes and pipes of ductile cast iron from India.

The complaint was lodged at the end of January by the pipe and drainage units of French construction group Saint-Gobain.

The Commission said the complainants had provided evidence that appeared to show the Indian producers benefiting from a number of subsidies from the national government and the states of Gujarat, Jharkhand, Rajasthan and West Bengal.

The alleged subsidies consist of: loans, loan guarantees and grants; exemption from certain taxes and duties; grants of mining rights and provision of land; as well as high-grade iron ore at sub-market prices.

The Commission is already investigating Indian manufacturers for alleged dumping of the product -- selling it for export at prices below domestic levels or below the cost of production.

That investigation, launched in December, is due to conclude in March 2016.