Union Budget 2019: Steel, iron makers seek removal of duty on coking coal; higher tariff on scrap

Ahead of the Budget, domestic iron and steel players have sought abolition of 2.5 percent basic customs duty on import of coking coal - a key raw material used in steelmaking

Press Trust of India June 17, 2019 15:12:10 IST
Union Budget 2019: Steel, iron makers seek removal of duty on coking coal; higher tariff on scrap
  • Removal of duty on coking coal is a long-standing demand of the steel industry

  • At present India's 85 percent of demand of coking coal is met through imports, industry bodies FICCI and CII have apprised the Ministry of Steel in a pre-Budget proposal

  • Scrap is another element which is posing a threat for the domestic steel manufacturers, the proposal said, requesting the duty on import of scrap should be raised to 10 percent from the current level 2.5 percent

New Delhi: Ahead of the Budget, domestic iron and steel players have sought abolition of 2.5 percent basic customs duty on import of coking coal - a key raw material used in steelmaking.

Removal of duty on coking coal is a long-standing demand of the industry.

At present India's 85 percent of demand of coking coal is met through imports, industry bodies FICCI and CII have apprised the Ministry of Steel in a pre-Budget proposal.

"As there is no substitution for coking coal in steel making, import duty of 2.5 percent on coking coal is redundant as import protection," the industry demanded in the proposal.

Union Budget 2019 Steel iron makers seek removal of duty on coking coal higher tariff on scrap

Representational image. Reuters.

Due to the increasing and volatile coking coal prices, domestic merchant pig iron industry is suffering from huge losses, which forced many players to stop operations, it said.

The industry has forecast that the financial year 2030 - the year by which India aims to take it capacity to 300 million tonnes - the demand for coking coal would be at 178.7 million tonnes and 140.2 MT will be met through imports.

However, it also noted that as per the National Steel Policy, the dependence on imported coking coal is supposed to be brought down to 65 percent by 2030.

Scrap is another element which is posing a threat for the domestic steel manufacturers, the proposal said, requesting the duty on import of scrap should be raised to 10 percent from the current level 2.5 percent.

It also sought for BIS standard for scrap besides review MIP of scrap.

"Cheap quality scrap imports have increased by 9 percent in FY19 from FY17 which has resulted in net forex outgo increase by 58 percent to $1.77 billion till February 2019.

"No BIS certification or standards are in place for scrap which leads to lack of authenticity on material import. There is also risk of scrap being hazardous and radioactive since there is no norms or check," the proposal note said.

Follow full coverage of Union Budget 2019-20 here

Updated Date:

also read

Nawaz Sharif may return to Pakistan soon, Imran Khan's spell at top set to end
World

Nawaz Sharif may return to Pakistan soon, Imran Khan's spell at top set to end

The development comes amid a power tussle between the army and Khan, with the former planning to pave the exit route for the ex-cricketer who has fallen out of favour.

Will get back all money taken from banks, won't let defaulters go 'scot-free', says Nirmala Sitharaman
India

Will get back all money taken from banks, won't let defaulters go 'scot-free', says Nirmala Sitharaman

The finance minister was addressing a function after launching new schemes and handing over orders to various beneficiaries under the financial inclusion and credit outreach programme

Centre releases Rs 95,082-cr to states as November tax devolution, says finance ministry
Business

Centre releases Rs 95,082-cr to states as November tax devolution, says finance ministry

The increased amount of devolution in November is an advance release, and final adjustments will be made in March 2022