Although the Indian national budget for the fiscal year 2017-18 fail to meet steel industry expectations, India’s Ministry of Steel will continue pushing the government for a reduction or scrapping of import duties on scrap and coking coal, a senior government official said on Friday, February 17.
The government official said that reduction or scrapping of import duties on coking coal and scrap is a necessary government initiative to enable domestic steel mills to reduce cost of production and tackle competition from the flood of cheap imported steel.
Currently, imported coking coal attracts a duty of 2.5 percent and steel scrap is subject to a duty of five percent.
The official said that reduction of import duty on steel scrap will also be in line with the government’s draft new national steel policy to promote scrap-based steel mills across the country through special purpose vehicles of government owned and managed steel companies.