Don't see any reason for safeguard duty to be 20% on steel products: Steel secy

Last month, DGTR had recommended a 12 percent provisional safeguard duty ad valorem for 200 days on select steel products.

Steel secretary Sandeep Pondrik on April 16 said it is difficult to say if the safeguard duty rate on steel products will be increased to 20 percent.

The secretary, during an interview with CNBC-TV18, said the recommendation of Directorate General of Trade Remedies (DGTR) is under examination and a decisions is "likely in the near future".

Last month, DGTR had recommended a 12 percent provisional safeguard duty ad valorem for 200 days on select steel products.

Pondrik told CNBC-TV18 that there is "no reason" to expect an increase in the duty rate from DGTR's earlier recommendation.

"The safeguard duty imposition process is a quasi-juidicial process and DGTR has made its recommendations after hearing everyone. Government will take a decision based on the recommendations. I don't see any reason for the rumours about 20% safeguard duty."

Significantly, the secretary said the government does not expect much increase in steel imports due to tariff war between the US and China. He pointed out that the imports have not increased significantly from India's neighbour so far.

"Bulk of the increase in imports are from Japan and not China," he told CNBC-TV18, adding that safeguard duty is not the only way to curb dumping. He further said that the ministry is looking at the "abuse of import licenses".

In terms of steel consumption, the secretary highlighted that India is the only major economy which has registered a double digit growth.

"In all the major economies, the steel consumption is either stagnating or going down. India is the bright spot in terms of steel consumption and we expect it to continue due to increased infrastructure spending by the government," he said.

Separately, Pondrik said the government has no plans to merge RINL, NMDC Steel and SAIL and there is "no progress" on the divestment of NMDC Steel.