Steel export duty imposed in view of requirement, in talks with various stakeholders: Minister

The Centre's decision to impose export duty on steel and iron ore earlier this year was based on the requirement back then and the government is now in talks with various stakeholders, taking suggestions in order to reconsider rolling back export duty on some steel products, if not all, said Minister of State for Steel Faggan Singh Kulaste.

Speaking to CNBC TV18, Kulaste said that the government will also take policy decision on steel export duty in sometime.

Earlier this month, Moneycontrol, citing senior industry executives, had reported that the government is likely to withdraw the export duty on steel in phases. The government is believed to be considering rolling back export duty on flat products first, while the export duty on building construction steel like Rebars, wire roads, and roofing sheets would continue.

Moreover, on the question of the government's Rs 6,322-crore production-lined incentive (PLI) scheme for specialty steel to boost somestic production, Kulaste added, "PLI scheme was brought to streamline efforts of steel sector."

Meanwhile, as the festive season approaches, the minister also added that the government is making efforts to fulfil steel requirements from all possible means.

In May, the government hiked the duty on exports of iron ore by up to 50 percent and for a few steel intermediaries to 15 percent. It also waived customs duty on the import of some raw materials, including coking coal and ferronickel, used by the steel industry.

The measures were taken to boost domestic availability, check inflation, stabilise prices of coal and address the issues of steel producers reeling under high input costs.

However, steel industry players had said imposition of export duties on steel products will send a negative signal to investors and adversely impact capacity expansion projects under the PLI scheme.

According to the steel ministry, the sector's exports in FY22 increased by 25.1 percent to 134.94 lakh metric tonnes (LMT), while imports dipped 1.7 percent to 46.69 LMT.