Steel industry seeks protection, status quo on import duty

Indian Steel Alliance, an industry body consisting of five large steel makers, has sought protection and urged Govt to maintain import duty at 15%. It also expects Govt to resume export benefits.

India's steel producers have sought protection for the sector and urged the new Government to maintain the import duty at 15 per cent, an industry group said on Friday.

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Indian Steel Alliance, an industry body consisting of five large steel makers, also expects the Government to resume export benefits, scrapped by the previous Government to keep local prices under check.

It has also urged the Government to provide relief to firms that import raw materials that are not locally available.

The association said the Government should maintain the excise duty on steel at eight per cent to make steel more competitive and more affordable to the user industry.

Indian steel consumption has grown at a steady rate of about five-six per cent over the last decade and reached about 32 million tonne in the year ended March 2004.

Strong demand from the construction and automobile sectors is seen boosting demand for the commodity and industry experts forecast consumption to rise to 45 million tonne by 2010.

State-run Steel Authority of India Ltd is the industry leader, while private sector Tata Iron and Steel Company Ltd is the second-biggest steel producer.