H M Nerurkar
“The Indian Steel Industry is facing problems due to shortage of iron ore and continued delays in project approvals. The industry will benefit from proactive actions on these fronts in the Union Budget."
The first six months of the current fiscal have seen a 40% jump in steel imports. In order to protect interests of the domestic industry, the Budget needs to revisit last year’s hike in excise duty and take steps to discourage dumping of products in India. In line with the Government's policy of reducing the import duty for raw materials for making steel, import duty on steel grade limestone, dolomite (which is presently 5%) and iron ore (which is currently 2.5%) should also be reduced to zero.
Given the priority accorded to infrastructure in the 12th Plan, and the expectation that the private sector would contribute half the envisaged investment of Rs 50 lakh crores, the Budget should also look at introducing special incentives to encourage capital goods industries.”