Govt exhorts domestic steel makers to become more competitive globally

New Delhi: The government has exhorted domestic steel makers to become more competitive locally as also in export markets besides developing newer products for use in industrial and construction sectors.

In the upcoming Budget, the steel makers are expecting relaxation in basic custom duty (BCD) levied on raw materials like coking coal, anthracite coal, graphite, electrode, limestone and dolomite etc.

At a conference organised by Indian Steel Association (ISA) on Friday, Union Steel Minister Dharmendra Pradhan said domestic steel manufacturers should focus on increasing production of finished steel while reducing imports and increasing imports.

"I expect this from the ISA that when we hope for a tax restructuring from someone, we must increase production, become more competitive, increase exports and minimise import. The Finance Department gets some amount as revenue (on import of steel making raw materials). It must be filled with confidence that when the manufacturing line will be in our country the government can earn more (revenue by means of tax),"

he said.

"We need to increase our consumption. When volume increases, we (industry) will be able to contribute more to the country. Then the Finance Department will take interest in the reforms we are expecting," the minister said.

Citing the example of Japan, Pradhan said the island country is an exporter of finished steel. It is a global supplier of steel for segments like automobile, electronics, big infrastructure etc.

When Japan was able to make a global market for itself "why can't we (Indian steel players)", the Union Steel Minister Dharmendra Pradhan stressed.

Minister of State for Steel Faggan Singh Kulaste said the domestic per capita steel consumption at 74 kg is lower compared to the global average consumption.

It is one-third of the global average per capita steel consumption, he said.

Kulaste asked the ISA, which is the apex body for steel makers in India, to draw a road map to increase ways of increasing steel consumption both in urban and rural areas of the country, and submit it with the ministry.