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

Next Story
Infrastructure Transport

Railways approves major upgrade for Telangana traction lines

The Ministry of Railways has approved the upgradation of the electric traction system in two crucial railway sections — Medchal–Mudkhed (225 km) and Mahbubnagar–Dhone (184 km). The projects, costing Rs 1.93 billion and Rs 1.23 billion respectively, will enhance the electric traction capacity from 1X25 KV to 2X25 KV. The work includes modifications to circuit breakers and switching stations, along with the installation of additional conductors. These routes serve as vital links between Northern and Southern India via Hyderabad. Once completed, the upgraded system will reduce voltage dro..

Next Story
Infrastructure Transport

Adani to invest Rs 425 billion more in Maharashtra’s Dighi Port

The Adani Group has committed to invest an additional Rs 425 billion in the Dighi Port project, located along Maharashtra’s coastal Konkan belt, government officials announced on Monday. Adani Ports and Special Economic Zone (APSEZ)-run Dighi Ports signed a memorandum of understanding (MoU) with the Maharashtra government to undertake the expansion of the port and related infrastructure. This new commitment comes as part of a broader investment initiative by the state. Chief Minister Devendra Fadnavis said the agreement is among 15 MoUs worth over Rs 560 billion signed during the opening d..

Next Story
Infrastructure Transport

HUDCO, JNPA sign Rs 50 billion deal for port development

In a strategic move, the Housing and Urban Development Corporation Ltd (HUDCO) has signed a Memorandum of Understanding (MoU) with the Jawaharlal Nehru Port Authority (JNPA) for an investment of Rs 50 billion to revamp and develop port infrastructure. The non-binding agreement is intended to strengthen cooperation on both existing and upcoming infrastructure projects, with a focus on development, financing, and refinancing of port facilities at the Jawaharlal Nehru Port. The MoU was formalised with the signatures of Sanjay Kulshrestha, Chairman and Managing Director of HUDCO, and Unmesh Shar..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?