bilateral beat - High Commission of India, Colombo

Spotlight Continues: SteelGovernment InitiativesThe Union Budget 2012-13 is a pragmatic and growth-oriented one. Infrastructure sector has beengiven due thrust in the budget. Doubling the infrastructure tax-free bond amount to Rs 60,000 crore (US$10.66 billion), and reaffirming investment of Rs 50,000 billion (US$ 888.10 billion) in infrastructure sector in12th Plan are steps that present a scenario conducive for growth of steel industry.The main highlight of the Union Budget 2012-13 for the steel industry was the proposal to reducebasic customs duty on plant and machinery imported for setting up or substantial expansion of iron orepellet plants or iron-ore beneficiation plants from 7.5 per cent to 2.5 per cent. The other proposals relatingto the steel sector are as under:To reduce basic customs duty on- Coating material for manufacture of electrical steel from 7.5 per cent to 5 per cent- Nickel ore and concentrate and nickel oxide/ hydroxide from 2.5 per cent or 7.5 per cent to NilTo enhance export duty on chromium ore from Rs 3,000 per tonne to 30 per cent ad valoremTo enhance basic customs duty on non-alloy, flat-rolled steel from 5 per cent to 7.5 per centSome other initiatives taken by the Government include the following:100 per cent foreign direct investment (FDI) through the automatic route is allowed in the sectorLarge infrastructure projects in Public-Private Partnership (PPP) mode are being formedGovernment is encouraging research and development (R&D) activities in the sectorReduced custom duty and other favourable measuresGovernment of India has framed the National Steel Policy (NSP) to encourage the steel industry toreach global benchmarks in terms of quality, cost and efficiencyRoad AheadThe Government's support to infrastructure development in both rural and urban cities has beencreating a significant demand for steel. With the Government's proactive incentive plans to boost economicgrowth by injecting funds in various industries, such as construction, infrastructure, automobile, and power;the steel industry in future will grow, as per a RNCOS report.The Union Minister for Steel released a report entitled 'A Roadmap for Research & Developmentand Technology for Indian Iron and Steel Industry'. The roadmap plans to develop collaborative R&Dprojects at national level with academic and research institutes/ laboratories of repute as well as theindustry to share expertise. It also further aims at streamlining R&D investments in the steel industrythrough incentives. Moreover, in order to provide accelerated thrust on research , Ministry of Steel is encouragingR&D activities both in public and private steel sectors by providing financial assistance.India set to become second largest steel producerIndia is poised to become the world's second largest steel producer. However, this is subject tocompanies finding the right technology to produce special categories of steel. Currently, with 74 milliontonnes annual production in 2011, India is the fourth largest producer. Per capita steel consumption wentup to 59 kg in 2011-12, from 34 kg in 2004-05.Source: www.ibef.orgPrevious Page Back to Cover Page Next Page