Indian steel producers demand cheaper loans

Indian steel producers demand cheaper loans

Indian Steel Alliance (ISA), representing steel producers in India stated that loans for capacity expansion to be cheaper if the production target of 66 million tons by 2011 is to be achieved. According to the statement made by ISA, the current steel production capacity in India is 35 million tons and to increase it to 60 million tons, investment of Rupees 750 billion ($16.6 billion) is required. Accordingly, ISA demanded government to reduce interest rates in India, which are higher than the interest rates in other countries. ISA also demanded the government to restore Duty Entitlement Pass Book (DEBP) incentives and to keep duties on imported steel products at 15% and excise duty at 8%.