Steel Co's to benefit from hike in Import Duty

Domestic steel makers like SAIL and JSW Steel will benefit
from the hike in customs duty on flat steel products from 5% to 7.5%.

“It will make the imports costlier by about Rs 1000-1500/MT,” said SAIL Chairman, Mr C.S.Verma. Such carbon flat products, imported largely
from China are mainly used in manufacture power equipment.

Further, the boost to infrastructure sector through higher
allocation in 12th Plan will trigger more demand for steel, Mr Verma said.

The cut in import duty on thermal coal will also marginally
benefit the steel makers, who run captive power plants. Steel makers like SAIL
and JSW Steel will also benefit from the reduction of customs duty on coating
material for manufacture of electrical steel from 7.5 per cent to 5 per cent.

The cut in customs duty on imported pellet making equipment
will promote value addition, Mr Verma said. SAIL is in the process of setting
up a pelletisation plant at Gua mines in Jharkhand.

The customs duty on machinery for pellet making and
beneficiation plant has been reduced to 2.5 per cent from 7.5 per cent in a bid
to encourage the use of iron ore fines.

Last year, the Government had exempted duty on exports on
iron ore pellets. The present pellet capacity in the country is estimated at 18
million tonnes.