Government may cut export duty on steel

New Delhi, Sept 21: The government is actively studying the issue of export duty which was imposed on certain grades of steel in May this year. The matter is being discussed at the highest level, Union steel minister Jyotiraditya Scindia told reporters at the National Management Convention organized by the All India Management Association (AIMA).

 

 

 

"This is something which is under active study by my department as well as the government. We are certainly discussing this at the highest level. When a decision is taken on this you shall be informed," he said in reply to a question about whether the government is considering removing export duty on iron ore and steel intermediaries.

 

 

 

On May 21, 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 importing some raw materials, including coking coal and ferronickel, used by the steel industry. The move was aimed at increasing the availability of this raw material for domestic manufacturers. When asked if he has written a letter to the finance minister seeking removal of the duties, the minister replied: "I have written to the finance ministry on a number of issues facing the steel industry. I will be in discussions with the finance ministry and based on the discussions the government will take a considered view on all those issues."

 

 

Expressing concern over the duty levied on overseas shipments of the metal, the Indian Steel Association (ISA), which represents the domestic steel companies, had said India may lose export opportunities and the decision may also impact the overall economic activity in the country.