FICCI seeks 3 months exemption to clear pending steel orders
Steel

FICCI seeks 3 months exemption to clear pending steel orders

Industry body Federation of Indian Chambers of Commerce & Industry (FICCI) has urged the government to give the domestic steel industry three months to clear their orders.

Reacting to the government’s move to levy export duty on some steel items, V R Sharma, co-chair of the FICCI Steel Committee said, at least three months should be given to taper off orders and to supply the orders accepted.

Managing Director (MD) of Jindal Steel and Power Ltd (JSPL), V R Sharma, told the media that there are 2 million tonnes (mt) of steel orders in the pipeline, where either Letters of Credit are established or the sales agreements are inked. Such orders supplied at the given rate will be impacted due to the duty charged.

On Saturday, the government waived customs duty on the import of some raw materials, including coking coal and ferronickel, used by the steel industry, a move which will reduce the price for the domestic industry, and decrease the costs.

According to a notification, the duty on iron ore exports was increased up to 50%, and a few steel intermediaries to 15% to raise domestic availability.

FICCI appreciates the steps of the government. However, a sudden export duty imposition will push steel mills to stop export bookings, but what will happen to the orders accepted or still in the pipeline. A three-month time will provide ease to the customers who are not at fault, he said.

An industry executive said that the exports of steel from India were minimal in the financial year (FY) ending in March 2022.

Around 10 mt of steel was exported from India against an output of over 110 mt during the current year, he said.

Various nations were looking toward India as an opportunity amid the Ukraine-Russia conflict.

The executive said that the three-month exemption would provide some relief to the steel players whose orders are in the pipeline.

Image Source

Also read: Steel products prices drops by 10%-15% to Rs 57,000 per tonne

Industry body Federation of Indian Chambers of Commerce & Industry (FICCI) has urged the government to give the domestic steel industry three months to clear their orders. Reacting to the government’s move to levy export duty on some steel items, V R Sharma, co-chair of the FICCI Steel Committee said, at least three months should be given to taper off orders and to supply the orders accepted. Managing Director (MD) of Jindal Steel and Power Ltd (JSPL), V R Sharma, told the media that there are 2 million tonnes (mt) of steel orders in the pipeline, where either Letters of Credit are established or the sales agreements are inked. Such orders supplied at the given rate will be impacted due to the duty charged. On Saturday, the government waived customs duty on the import of some raw materials, including coking coal and ferronickel, used by the steel industry, a move which will reduce the price for the domestic industry, and decrease the costs. According to a notification, the duty on iron ore exports was increased up to 50%, and a few steel intermediaries to 15% to raise domestic availability. FICCI appreciates the steps of the government. However, a sudden export duty imposition will push steel mills to stop export bookings, but what will happen to the orders accepted or still in the pipeline. A three-month time will provide ease to the customers who are not at fault, he said. An industry executive said that the exports of steel from India were minimal in the financial year (FY) ending in March 2022. Around 10 mt of steel was exported from India against an output of over 110 mt during the current year, he said. Various nations were looking toward India as an opportunity amid the Ukraine-Russia conflict. The executive said that the three-month exemption would provide some relief to the steel players whose orders are in the pipeline. Image Source Also read: Steel products prices drops by 10%-15% to Rs 57,000 per tonne

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