The Hindu Business Line : Steel body seeks import duty cut on inputs

THE Indian Steel Alliance (ISA), in its 2004-05 Budget wish-list submitted to the Government, has suggested an across-the-board reduction in import duty on all raw materials used for making steel. It has suggested that imports may be allowed at a uniform rate of five per cent.

As of now, low ash metallurgical coke and nickel and nickel alloys attract a 10 per cent duty, while non-coking coal for steel making and limestone with less than one per cent silica call for 25 per cent customs duty. Graphite electrodes beyond a certain size are subjected to 15 per cent duty. The ISA has recommended a five per cent import duty to the Government for all these inputs.

The ISA represents the five major primary steel manufacturers in the country, namely the Steel Authority of India Ltd (SAIL), Tata Steel, Ispat Industries, Jindal Vijaynagar and Essar Steel. The steel body has also suggested concessional rates for project imports and zero duty for those varieties that are not indigenously manufactured.

On the excise front, the ISA has suggested that the Government restores the earlier practice of allowing the integrated steel plants to pay excise duty at the factory gate price and not stockyard price as it includes the freight charges that gets added to the excise component and makes steel sold from the stockyard costlier.

With regard to the Railway Budget, the steel body has asked for a reduction in railway freight tariff classification of steel from 180 to 150, which would mean around 16 per cent reduction. In case of iron ore and limestone, the ISA has urged for reclassification from 120 to 100 and for coal from 130 to 100.

The ISA recommendations for the Railway Budget submitted to the Government also includes demand for increased availability of railway wagons for to and fro movement of goods from the plants and additional railway lines for connecting the mines as well as withdrawal of surcharge on the Bailadila-Vishakhapatnam line.

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