The steel ministry undertook several “iterations” with the primary steelmakers and the SSI steel sector through their advisory groups, before removing the export tax, informed Indian steel minister Jyotiraditya Scindia. “There was a one voice chorus that the export tax must be removed immediately,” Scindia said. The minister was speaking at an Indian Steel Association conference in New Delhi on Monday.
“It is my job as minister to understand and hear the request. It us also my job to push the reason so that the conclusion we come to as a group is well researched, judiciously looked at and convincingly argued,” the minister said.
He said the ministry tried to understand the downstream steel industry which went through a long period of high prices. Steel being one of the major inputs for any economic cycle, it has an effect down the value chain and therefore the ministry needed to understand the effect and coefficient and co-relation to the prices of raw materials like iron ore and coking coal. It was also important to understand international volatility of steel prices, demand and supply dynamics and pressures on the steel industry.
Deliberations were also held on post-festive season scenario when demand and prices rise. “Where stainless steel is concerned, the case was argued very emotionally and strongly by Abhyudaya Jindal. Finally, after several iterations with the advisory committees, we came out with a judicious argument with which I broached both the Group of Ministers as well as the finance ministry. I promised the industry that we will take a clear cut opinion possibly by November,” Scindia recalled.
Based on those discussions and also with the GoMs and finance ministry the duty was removed last Friday…, “enabling a new era for the steel industry today,” the minister said.
Scindia said it has taken years for India’s steel industry to plant its footprint in international markets. Customer acquisition is the most expensive cost and second to it is customer retention. After many years the industry has been able to enlage its footprint and increase its forays in international markets.
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