GOVT WITHDRAWS DUTY EXEMPTION ON
IMPORT OF COIN BLANKS
The Government has
recently withdrawn the duty exemption on the import of coin blanks.
This has provided the steel industry an even playing field for
supply of coin blanks to the government mints. With an appropriate
duty structure, the entire demand of this industry can be indigenously
met, the Steel Minister Shri Braja Kishore Tripathy, said today,
addressing a special meeting of the Indian Stainless Steel Development
Association (ISSDA).
He said, at present
there are two global tenders for coin blanks under evaluation.
The industry has requested that the provisions of the latest notification,
withdrawing the duty exemption on coin blanks be made applicable
in the evaluation of the tenders. The Ministry of Steel has already
taken up this issue with the Finance Ministry.
Shri Tripathy said
that Nickel is an essential ingredient for this sector. The union
budget 2002-03 rationalised the customs duty on Nickel at 10 per
cent. But increasing prices of Nickel have necessitated a further
reduction in customs duty. The Ministry will take up this issue
in its budget proposals for 2004-05considering the market situation
during the current fiscal.
The Minister said
with an impressive performance in 2002-03 the Steel Industry has
reached the take-off stage for integration with the global steel
market. The forces of revival that helped the turnaround of the
industry, continue to sustain the process of revival and resurgence.
During April-August the growth of domestic production of finished
carbon steel was 7.3 percent; exports 37 per cent; imports 4 per
cent and apparent consumption 3.4 per cent.
He observed that
India now produces 1.2 million tonnes of stainless steel representing
a share of 5.58 per cent of total global stainless steel production
of 21.5 million tonnes. In spite of fierce competition in the
global stainless steel market, India has exported about 4 lakh
tonnes of stainless steel worth over Rs. 2,500 crore. With an
export coverage of more than 30 per cent, the stainless steel
sector is much ahead of the overall steel sector, where the export
coverage is about 10 per cent. He complimented the stainless steel
industry for its remarkable performance.
Shri Tripathy said,
China with its massive infrastructure development programme and
needs of a growing economy has been an important export destination
for Indian stainless steel. In the coming days this trend is likely
to be maintained as the export market continues to perform at
a high level and China's demand continues to be the prime mover
in boosting exports.
Despite all odds,
he said, the Indian stainless steel producers have bravely faced
the global competition to create records as demonstrated by their
excellent all round performance in 2002-03. This sector will continue
to sustain its competitive advantage and will come out with even
more impressive performance in this fiscal. He assured the stainless
steel fraternity that Government will examine all problems raised
by ISSDA in a time bound manner and appropriate action will be
initiated.
The Secretary, Steel,
Shri V.K.Duggal said, the problems like large-scale export of
chrome ore and concentrates, dumping of prime and seconds of pipes
and tubes, imposition of duty on imports of stainless steel by
Mexico and other issues are being examined by the Ministry. He
asked ISSDA to provide more facts and figures on some issues to
the Ministry to initiate action.
The senior officials
of the Steel Ministry and the members of the ISSDA attended the
meeting.
