Steel companies can get relief: Government’s preparation to reduce export duty
In view of the recent sharp fall in steel prices in the global commodity market and increase in domestic supply, the Government of India may reduce the export duty applicable on steel products by half or completely.
According to media reports, the Ministry of Steel has discussed the issue with the Finance Ministry after taking opinion from all the industry representatives. According to sources, the 15 per cent export duty imposed on steel exports on May 22 may be removed in half or completely by the end of this month.
Steel industry analysts said the duty imposed on steel exports is having a negative impact on domestic producers which may also force them to change their capital expenditure plans. Recently, JSW Steel in its capital investment plan for the current financial year has allocated Rs. 5000 crores by reducing Rs. 15,000 crore has been estimated. Tata Steel, on the other hand, is yet to make any changes in its capital expenditure plan.