Stainless steel industry body ISSDA is expecting the government to look into the demands of local players to remove 2.5 per cent basic customs duty on import of ferro nickel and stainless steel scrap
It is a long-standing demand of domestic stainless steel producers that the duty on import of ferro nickel and stainless steel scrap -- key raw materials used in producing stainless steel -- should be removed or made zero.
"The two raw materials are not available in the country and the industry is importing it. Steel Secretary Aruna Sharma has assured us that the duty will be removed and her ministry is already in touch with the finance ministry in this regard," Indian Stainless Steel Development Association (ISSDA) President K K Pahuja said.
The government had removed customs duty on pure nickel in the last budget, but the move did not help the industry much since most of nickel used by stainless steel makers is in the form of ferro nickel, Pahuja said.
The same relief should be extended to ferro-nickel and along with it the duty should be removed on stainless steel scrap also, he added.
On hike in tariffs by the US, Pahuja said it has diverted the attention of global players towards India.
"Global players are already trying to push its finished steel products into India. They are even routing products like pipes, tubes and coil through countries like Vietnam and Malaysia into India," he added.
ISSDA is the apex body representing over 145 companies of the stainless steel industry in India. It was founded in 1989 with the objective of diversifying the applications of stainless steel in India.
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