+
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

Related Stories

Gold Stories

Next Story
Products

Interio by Godrej launches modular workplace solutions

Interio by Godrej has launched Workscapes, a modular workplace solutions category designed to help organisations configure and adapt workspaces to changing requirements. The portfolio combines mobile and compatible furniture and support elements that can be rearranged across different work modes without changes to fixed layouts.Workscapes includes Collaboration Tables, Privacy Solutions, Mobile Markerboards and Space Dividers, Power Solutions, Storage and Support Elements, Meeting and Presentation Tools, and Seating Elements. The range is designed for focused work, collaboration, informal disc..

Next Story
Infrastructure Urban

CAFE-III Gives Auto Industry Investment Clarity

The government’s new Corporate Average Fuel Economy (CAFE-III) norms have provided the automobile industry with a clearer framework for technology investments, according to industry representatives. The framework seeks to balance environmental objectives with flexibility for manufacturers while encouraging the adoption of flex-fuel vehicles and biofuels. Society of Indian Automobile Manufacturers (SIAM) President Shenu Agarwal said the five-year framework would give automakers greater predictability to plan investments and accelerate innovation. He said the regulation established annual targ..

Next Story
Infrastructure Energy

Mines Ministry to Auction Two Offshore Mineral Blocks in Andaman Sea

The Ministry of Mines will launch an auction of two offshore mineral blocks in the Andaman Sea on Thursday, seeking to unlock India’s offshore mineral potential and strengthen long-term mineral resource security. The blocks will be offered under a composite licence, which permits exploration and development activities in accordance with the applicable regulatory framework. The ministry said the auction was intended to encourage systematic exploration, attract investment and promote the use of advanced technologies for offshore mineral exploration and development. The initiative is also aimed..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code