Following the hike in export duty on various steel products, FICCI Steel Committee co-chair VR Sharma on Sunday requested the government to give three months time to the domestic steel industry to clear its orders.
Sharma, who is also the Managing Director (MD) of Jindal Steel and Power Limited (JSPL), told PTI, “I suggest at least three months to reduce the order and supply the taken orders.” should go.”
He highlighted that about 2 million tonnes steel Orders in the pipeline where either letters of credit have been established or sales contracts have been signed.
Sharma said due to levy of export duty, the supply of such orders at the given rate would be affected.
Sharma lauded the government’s efforts, however, adding that “the sudden imposition of export duty will force steel mills to stop booking exports, but what about orders that are still in the pipeline. Three months later.” relief to those customers who have no fault of theirs.”
He informed that during the financial year ended March 2022, about 10 MT of steel was exported from India against the production of over 110 MT. “Various countries were looking at India as an opportunity in the midst of the Ukraine-Russia conflict,” he said.
To which Sharma said, the relaxation of three months will give some relief to those players whose orders are in the pipeline.
On Saturday, the Center increased the export duty on iron ore to 50% and concentrated categories from 30% which now applies to iron content above 58%. In addition, iron ore pellets which currently do not attract any export duty – 15% duty have been levied. This has been done to increase domestic availability.