Indian Steel Alliance (ISA) hopes and expects that the new Government would continue to carry forward the economic reforms policy initiated in early 1990’s.

The Government should aim to increase the per capita steel consumption in the country, which at present is a mere 29 kgs compared to world average of 144 kg. ISA hopes the Government will continue the thrust on infrastructure development especially construction and housing which, will provide a fillip to steel consumption in the country.

To make Indian steel industry globally competitive the new Government should resume DEPB benefits on steel exports. The Railway network should be strengthened further by adding more wagons and improving connectivity between ports and steel producing plants by laying more tracks.

Changing world market dynamics may result in Indian steel industry being faced with the threat of cheap imports. ISA hopes the new Government will provide adequate protection to the domestic steel industry and not bring down import duty on steel any further from the current 15% level.

Availability and prices of raw materials is a major concern for the Indian steel industry. Policies that contribute to development of raw material resources within the country should be initiated. ISA strongly feels that relief needs to be provided on import of raw materials, which are not indigenously available/inadequately available.

Raw material

Current Tariff

Proposed Tariff

Lime stone with Silica content 1 % & less

20%

5%

Coke

5%

0%

Graphite electrodes 24% and above

15%

5%

20%

5%

ISA had welcomed the recent reduction in the excise duty on steel from 16% to 8%. Status quo on excise duty needs to be maintained to make steel more affordable to the user industry and more competitive

ISA strongly recommends that the current import duty of 40% on seconds and defectives should be maintained. Historically, imports of cheap seconds and defectives have hurt the Indian steel industry. To maintain the quality of domestic steel such imports must be discouraged.