Steel Ministry to recommend waiver of 5% import duty on scrap

New Delhi, Aug 20 (UNI) Minister for Steel, Chemicals and Fertilisers Ram Vilas Paswan today said his Ministry will urge the Finance Ministry to waive five per cent customs duty on imported scrap, making it zero per cent.

Talking to newsmen after addressing the Steel Consumers Council meeting here, the Minister said that secondary steel producers made a demand for abolishing the five per cent import duty at the council meeting saying that there is already a four per cent CVD on scrap, barring a few exceptions.

Mr Paswan said the positioning of stockyards of Steel Authority of India (SAIL) and Rashtriya Ispat Nigam Ltd (RINL) across the country will be reviewed to ensure availability of steel.

He said, SAIL has already established a dealership network of about 1,100 outlets across 602 districts and its product is now available at district headquarters at the same price as the state capitals.

He said India will produce about 85 million tonnes by 2011-12 and may reach 200 million tonnes by 2020.

Mr Paswan said India will become the second largest steel maker in the world by 2015.

The Minister said SAIL is now implementing an expansion plan of over Rs 49,000 crore which will take its capacity to 26.18 million tonnes by 2010 and RINL's modernisation and expansion programme will cost about Rs 9,000 crore and will be completed by 2010 also.

He said strict monitoring of implementation of the expansion programme is being done to ensure timely completion.

On Chiria mines issue, the Minister said SAIL will set up a 15 million tonnes plant in Jharkhand if the lease for two billion tonnes iron ore is renewed in favour of SAIL by the state government.

He said steel is a deregulated sector but a price monitoring committee has been set up with officials, steel producers and consumers as its member, to keep a watch over the price movements and the committee will work on plans to avoid volatility in the steel price movements.

Earlier, in his inaugural address at the meeting of the Council, the Minister said in order to contain the prices, the steel producers have been requested by the committee to keep a check on the ex-factory prices of long products and also to balance their exports keeping in view the domestic demand and not to commit exports at the cost of domestic demand.

Mr Paswan said the steel sector which contributes about two per cent of the GDP is set for rapid growth. The production of steel has gone up form 35 million tonnes to 51 million tonnes during the last three years making India the fifth largest producer in the world.

The Minister informed the Steel Consumers Council will henceforth meet once in six months to ensure better coordination.

UNI