The Union Budget 2018-19 was presented in the parliament today on 1st February 2018. The Budget was positive in terms of infrastructure and construction projects. But Steel Industry expectations was hardly met in the Union Budget especially it has largely overlooked the key demand to reduce customs duty on melting scrap and coking coal to nil from present level of 2.5%.
Government has introduced 20% Tariff rate on export duty on electrodes used for furnaces. However the current export duty on such electrodes continues to remain zero.
Highlights of the Budget for Steel Industry
1. Strong growth rate projected – GDP growth at 6.3% in the second quarter signaled turnaround of the economy. We hope to grow at 7.2% to 7.5% in the second half
2. Infrastructure Investments – Infrastructure is the growth driver of economy. Our country needs massive investments estimated to be in excess of `50 lakh crore in infrastructure to increase growth of GDP, connect and integrate the nation with a network of roads, airports, railways, ports and inland waterways and to provide good quality services to our people.
3. Road Infrastructure – Government has scaled new heights in development of Road Infrastructure sector. Govt is confident to complete National Highways exceeding 9000 kilometers length during 2017-18
4. Housing projects under Pradhan Mantri Awas Scheme – Under Prime Minister Awas Scheme Rural, 51 lakhs houses in year 2017-18 and 51 lakh houses during 2018-19 which is more than one crore houses will be constructed exclusively in rural areas. In urban areas the assistance has been sanctioned to construct 37 lakh houses
5. Allocation to rail and road sector – An all-time high allocation to rail and road sectors. Indian govt. is committed to further enhance public investment. Provision of key linkages like coal for power, power for railways and railway rakes for coal have been rationalized and made very efficient.
6. Setting up of Freight Corridors – Work on Eastern and Western dedicated Freight Corridors is in full swing. Adequate number of rolling stock – 12000 wagons, 5160 coaches and approximately 700 locomotives are being procured during 2018-19. A major programme has been initiated to strengthen infrastructure at the Goods sheds and fast track commissioning of private sidings.
7. Incentivising MSME – Propose to extend the benefit of this reduced rate of 25% also to companies who have reported turnover up to INR 250 crore in the financial year 2016-17. This will benefit the entire class of micro, small and medium enterprises which accounts for almost 99% of companies filing their tax returns.
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