India: Budget 2014-2015 Highlights for Steel Sector

Budget 2014-2015 Highlights

1. Royalty rates on minerals to be revised , which was due in 2012

2. Rationalizing Coal linkages and assuring adequate supply to power plants

3. Import duty on all type of Non Coking Coal rationalized to 2.5% and 2% CVD

4. Import duty on Met Coke & Coking Coal imposed to 2.5%

5. Import duty on Stainless Steel flat rolled steel increased to 7.5% from 5%

6. Import duty on Ships called for breaking reduced to 2.5% from 5%

7. Import duty on Scrap unchanged at 2.5%

8. Import duty on Iron ore/Pellets unchanged at 2.5%

9. Export duty on Iron ore unchanged at 30% and Pellets at 5%

10. Transportation of Iron ore through slurry pipeline will be promoted

11. Export duty on Bauxite increased to 20% from 10%
12. Import duty on Steel grade Dolomite reduced to 2.5% from 5%

13. The current impasse in mining sector, including, iron ore mining, will be resolved expeditiously

14. Changes,if necessary, in the MMDR Act, 1957 would be introduced to facilitate this

Import Duty in Steel Sector (FY14)

S.No.	Item	CTH No.	Existing Custom Duty FY14	Proposed Custom Duty FY15	Impact
1	Pig iron	72.01	5%	5%	=
2	Semis	72.07	5%	5%	=
3	Bars & Rods	72.13	5%	5%	=
4	Structural	72.16	5%	5%	=
5	HR Sheets/plates (Non Alloy)	72.11	7.5%	7.5%	=
6	HR Coils (Non Alloy)	72.08	7.5%	7.5%	=
7	CR Coils/sheets (Non Alloy)	72.09	7.5%	7.5%	=
8	GP/GC Sheets (Non Alloy)	72.10	7.5%	7.5%	=
9	Steel grade Lime Stone		5%	2.5%	Down
10	Defectives CR/coils	72.09	10%	10%	=
11	Stainless steel HR coils for coin blanks	72.19	5%	7.5%	Up
12	Melting Scrap (iron, steel & stainless steel)	72.04	2.5%	2.5%	=
13	Re-rollable Scrap	72.07	5%	5%	=
14	Ships for breaking	89.08	5%	2.5%	Down
15	Iron ore/Pellets	26.01	2.5%	2.5%	=
16	*Coking Coal of ash content below 12%	27.01	Nil	2.5%	Up
17	*Coking Coal of ash content above 12%	–	Nil	2.5%	Up
18	*Steam Coal	27.01	Varied	2.5%	Rationalized
19	Metcoke	27.04	Nil	2.5%	Up

*Varied import duty based to quality and origin has now been rationalized to 2.5% (Basic duty) and 2 % CVD to avoid confusion.