DEPB export benefits restored to steel sector

In less than a week of hiking excise duty on steel, the government today restored export benefits under the Duty Entitlement Pass Book (DEPB) scheme to give respite to the sector.

In the face of spiralling steel prices, the previous government had suspended export benefits under DEPB scheme to discourage producers from exports in order to ensure increased availability of steel in the domestic market.

The commerce ministry today issued a notification revoking suspension of DEPB rates effective from February 28 this year.

Earlier last week Finance Minister P Chidambaram had hiked the excise duty on steel from 8 to 12 per cent, saying that the lowering of levy by the previous government had not checked the price rise.

The resumption of export benefits under the product group category 'engineering' would help resume exports by the manufacturers and thus could affect the domestic supply of the product proportionately.

Welcoming the move, Essar Steel chief Vikram Amin said that the benefits for export have been "rightly restored".

Thanking the government for acceding to the industry's 'legitimate' dues, N C Mathur, president of Indian Stainless Steel Developers Association, said, "Unfortunately the steel industry was singled out for such a discriminatory treatment and now justice has been done to us".