The steel sector has plenty to cheer in the Budget 2012-13, as it has proposed increasing the import duty on flat-rolled steel to 7.5% and reducing duty on plant and machinery imports for iron ore beneficiation to 2.5%.
Finance Minister Pranab Mukheree has also reduced basic customs duty on coating material for the manufacture of electrical steel from 7.5% to 5%; and nickel ore and concentrate and nickel oxide from 2.5% or 7.5% to nil.
He also enhanced export duty on chromium ore from Rs 3,000 per tonne to 30% ad valorem.
Presenting the Budget today, Mukherjee proposed to enhance the basic customs duty on non-alloy, flat-rolled steel from 5% to 7.5%.
A long-pending demand of the steel makers, this move would discourage imports and thus and go a long way in protecting the interests of the domestic industry.
Expectations:
- The harried iron ore industry is further by 50% increase in the export duty from 20% to 30%. However, the export of iron ore pellets has been fully exempted from export duty to encourage the value addition process for fines. This could be a result of the steel industry
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