The Indian Steel Association, the voice of the Indian Steel Industry, has written to India’s Finance Minister Ms Nirmala Sitharaman seeking withdrawal of export duty on iron and steel intermediates. ISA Secretary General & Executive Head Mr Alok Sahay wrote ‘Indian Steel Association welcomes the step taken by the Government of India in eliminating import duty on coking coal, PCI coal and ferronickel as this step will help steel sector and steel based MSMEs as well. However, a sudden Imposition of export duty on wide range of steel products will push the steel Industry to stop export. Imposition of Import duty on Iron pellets will impact this industry and might bring it to the brink of closure. Large small players are also expected to be affected by this step of the Government Export duty on Carbon Steel, Stainless Steel Products and Pellets will create trust deficit within the international and domestic business community about India's stable policy regime, ease of doing business apart from this, investments for steel capacity building and capacity utilization will take a hit and affect Atmanirbhar Bharat Abhiyan, Local for Global and India's focus as an export hub, a vision given my Hon'ble Prime Minister of India.Mr Sahay wrote “We also understand about 2 million tonnes of steel orders are in the pipe line where either Letter of Credits is established or the sales contracts are signed. Therefore, Government should permit these orders to be executed without payment of export duties. A notification needs to be issued to this effect. It will also be pertinent to mention that relaxation was also allowed in case of recent ban on wheat exports and at the time of implementation of MIP for steel in the past.”Mr Sahay also said “It is a paradox that steel sector has been chasing the target given by Government of India to be a part of one trillion dollars of export revenue per year and now steel sector is to export steel with additional 15% duty that also without the remission (of embedded taxes making steel sector extremely uncompetitive. It is also pertinent to point out that on one side government is encouraging steel industry to expand capacities and invest in PLI scheme and on the other hand this step is taken to discourage exports, sending wrong signals to investors. The attractiveness of India as an investment destination and the long-term growth prospects of steel industry in India will be compromised.”Mr Sahay urged that “Keeping in views the above perspectives, Indian Steel Association requests Government of India to review and withdraw immediately the imposed export duty imposed and till the decision is taken, exporters be given at least 3 months' time to clear booked orders without export duty.”
The Indian Steel Association, the voice of the Indian Steel Industry, has written to India’s Finance Minister Ms Nirmala Sitharaman seeking withdrawal of export duty on iron and steel intermediates. ISA Secretary General & Executive Head Mr Alok Sahay wrote ‘Indian Steel Association welcomes the step taken by the Government of India in eliminating import duty on coking coal, PCI coal and ferronickel as this step will help steel sector and steel based MSMEs as well. However, a sudden Imposition of export duty on wide range of steel products will push the steel Industry to stop export. Imposition of Import duty on Iron pellets will impact this industry and might bring it to the brink of closure. Large small players are also expected to be affected by this step of the Government Export duty on Carbon Steel, Stainless Steel Products and Pellets will create trust deficit within the international and domestic business community about India's stable policy regime, ease of doing business apart from this, investments for steel capacity building and capacity utilization will take a hit and affect Atmanirbhar Bharat Abhiyan, Local for Global and India's focus as an export hub, a vision given my Hon'ble Prime Minister of India.Mr Sahay wrote “We also understand about 2 million tonnes of steel orders are in the pipe line where either Letter of Credits is established or the sales contracts are signed. Therefore, Government should permit these orders to be executed without payment of export duties. A notification needs to be issued to this effect. It will also be pertinent to mention that relaxation was also allowed in case of recent ban on wheat exports and at the time of implementation of MIP for steel in the past.”Mr Sahay also said “It is a paradox that steel sector has been chasing the target given by Government of India to be a part of one trillion dollars of export revenue per year and now steel sector is to export steel with additional 15% duty that also without the remission (of embedded taxes making steel sector extremely uncompetitive. It is also pertinent to point out that on one side government is encouraging steel industry to expand capacities and invest in PLI scheme and on the other hand this step is taken to discourage exports, sending wrong signals to investors. The attractiveness of India as an investment destination and the long-term growth prospects of steel industry in India will be compromised.”Mr Sahay urged that “Keeping in views the above perspectives, Indian Steel Association requests Government of India to review and withdraw immediately the imposed export duty imposed and till the decision is taken, exporters be given at least 3 months' time to clear booked orders without export duty.”
