In a move to bail out the steel industry, which is witnessing rising inventories and cheaper dumping, the government today withdrew the re-imposed 10 per cent Countervailing Duty (CVD) on imports of long steel products commonly called TMT bars. Similarly, it also withdrew exemptions on customs duty on zinc and ferro alloys to protect the domestic producers from cheaper imports. The measures were part of the second stimulus package announced today to give a much-needed boost to the Indian economy.

The measures will definitely benefit leading domestic giants like SAIL, Tata Steel, RINL and JSW. With exemptions withdrawn, the importers will now have to bear 10 per cent countervailing duty on TMT bars and five per cent customs duty on import of zinc and ferro alloys. “We had recommended imposition of CVD to protect the domestic utilities against cheaper imports and allow them a level-playing field to our utilities in the wake of rising imports. This is definitely a welcome move,” Steel Secretary Pramod Kumar Rastogi said. Echoing similar sentiments, Steel Authority of India Limited (SAIL) Chairman Sushil Kumar Roongta said, “This was due and we welcome the move.” Ispat Industries Managing Director Vinod Kumar Mittal said, “We welcome the move and expect that more measures would be taken from time to time to better our situation.” Essar Steel Holdings CEO J Mehra welcomed the move and reasoned that the government needed to take more steps to enthuse the sagging sentiments. He said there was a case for having a re-look on the taxation side so that end users of steel found it more affordable to buy the metal more.

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