ISA Proposes way Forward for the
Steel Industry
Calls for easy availability of quality raw materials and
resumption of DEPB benefits on steel exports; Recommends import duty levels be maintained
at 15%
New Delhi, June 1, 2004 : Indian Steel Alliance (ISA), an
association of major flat steel producers in the country, today said that steps must be
undertaken to ensure that the Indian steel industry continues to be viable and globally
competitive. ISA also released a Background Paper on the Indian steel industry titled ‘Indian
Steel – Prospects and Perspectives’.
Speaking at the occasion, Dr. Jamshed J. Irani, Chairman, Indian Steel Alliance, said,
“The steel industry has just emerged from a bad cycle and is beginning to get back on
its feet. We must take necessary steps to ensure that the industry continues to remain
healthy in the long run. Steel industry is a high employer. Every lakh of output in it
generates 1.3 man years of employment.”
ISA called for resumption of DEPB benefits on steel exports at the earliest to ensure that
the Indian steel exports remain competitive in global markets. With regard to major
problems faced by the industry, ISA said:
- 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. Relief needs to be provided on import of raw
materials, which are not indigenously available/inadequately available.
- Infrastructure support such as roads, ports and rail links need to be
strengthened to allow the steel industry to be more efficient and competitive.
- Changing world market dynamics may result in Indian steel industry
being faced with the threat of cheap imports. The Government should provide adequate
protection to the domestic steel industry and not bring down import duty on steel any
further from the current 15% level.
Mr. Moosa Raza, President, Indian Steel Alliance, said, “Steel is the backbone of any
economy and its consumption levels are an index of economic development of a nation. As
India moves ahead on the road to development the steel industry is capable and willing to
play its role. Indian steel industry today compares with the best in the world. While
there is immense scope to increase the consumption of steel in the country, the industry
also has the potential to make a mark on the world map.”
The Background Paper by ISA charts out the historical development of the steel industry in
the country, the current scenario and recommends steps for future growth. The objective of
the Background Paper is to ensure a better understanding of the Indian steel industry and
allow the industry to put forth its perspective on current issues. |
