Basic Custom Duty (BCD) and Countervailing Duty (CVD) exemption on imported iron ore is imperative to revive steel sector, said the Associated Chambers of Commerce and Industry of India (Assocham).
This measure is needed to revive the ailing steel industry and incorporate the investments made in India’s steel sector, Assocham said in a communication to the Finance Secretary (Economic Affairs Division), Dr Arvind Mayaram.
“Import of finished steel products in India from South Korea, Japan, and other countries from ASEAN (Association of South East Asian Nations) land at high concessional duty rates as compared to normal duty rates from other countries thereby making Indian steel products cheaper and pushing the sector in peril,” the industry body explained.
Considering that there was no mention of issues vis-à-vis removal of import duty on iron ore and its impact on the domestic steel industry in the Union Budget 2013-14, Assocham has urged the government to revisit this ‘Inverted’ duty rate between finished steel and iron ore which is denying an opportunity to the steel sector for value addition apart from risking huge funds invested by various banks and financial institutions thereby leading to job losses and downfall in investments in Indian steel industry.
“Non-availability of iron ore arising out of a tighter regulatory regime and various government impositions to weed out illegalities from iron ore mining sector is further stressing the steel production in India,” said Mr D.S. Rawat, secretary general of Assocham.