NEW DELHI: The global financial turmoil coupled with slackening demand has forced steel producers to cut production and delay expansion plans. In this crisis, the steel producers want the government to act tough and stop importing steel products. In a bid to shield the domestic players from cheap imports the government decided to levy 5% import duty on steel. But the producers say 5% duty does not serve any purpose. Sajjan Jindal, Vice Chairman, MD Jindal steel, said, “We have cheap imports from China and Russia. So 5% import duty would not be enough to protect us” Jindals firm, the country’s third largest steel maker, has decided to cut production by 15% in December and has delayed its 10 million tonne expansion plan by 6 months. Slowdown in manufacturing and real-estate sector has compelled steel manufacturers to revisit their production targets. And the real estate sector, says the answer lies in lower taxes and lower interest rates. K P Singh, Chairman, DLF, told, “The government will now have to take initiative and cut taxes in terms of interest rates, excise and services tax to ensure demand picks up.” Looking at the current situation, the steel manufacturers are pushing for an increase in import duty and reduction in excise.
|
Published on 
Tags:
