INDIAN BUDGET 2013: What does it mean for Steel Sector?

Last federal budget for the government announced on 28th Feb 2013, failed to cheer steel sector in large. Although with focus on rural development, some experts feel that this will give some boost to steel demand and also increase capita per consumption of steel.

Highlights of Union Budget

Iron Ore

1. Export duty on exports of
Iron Ore unchanged at 30% 

Coal

1. To levy 2% Customs, CVD
on coal (Steam and Bituminous) imports

2. Coal blending only solution as coal imports to rise
185 million tonnes by 2016-17, will work on PPP projects with
Coal India

Infrastructure

1. Finance minister giver big boost to infrastructure sector; looks to spend on rural development

2. Propose to provide
Rs 600 cr to rural housing fund in 2013-14

3. FM announces Rs 50,000 crore of tax free bonds to raise money for infrastructure & targets $1 trillion in infrastructure in the 12th plan.

4.Infrastructure Debt Funds will also be encouraged & there is a proposal to constitute regulatory authority for the roads sector

 Excise Duty

1.Excise duty
kept unchanged at 12% and Educational cess at 3%

 Ship/ Vessels

1.No duty on import of
ships, vessels