After India witnessed a 75% rise in steel imports, policy thinktank NITI Aayog is now entrusted with the task to chalk out a long-term strategy to increase demand for steel in the domestic market.
India imported steel worth Rs 36,073 crore in April-January 2015-16, as against Rs 44,893 crore last year.
The world’s third largest producer of steel is facing the problem of cheap imports, raw material crisis, inverted duty structure on iron ore and transportation problems, among others.
The government has taken steps to check import of cheap steel such as imposition of minimum import price, last month, on 173 steel products.
Late last year, the government had also imposed 20% safeguard import duty on steel recently, domestic producers have lobbied for more protectionist measures as their margins have taken a hit due to cheap imports from China, Russia, South Korea and Japan.
NITI Aayog is working on long-term solution of the problem, including ways to cut down imports and infrastructure-related facilities plaguing steel sector, sources said.
Steel and Mines Minister Narendra Singh Tomar told Rajya Sabha in a written reply on Wednesday that while steel imports have grown 75%, the import growth has slowed to about 24% so far in this fiscal.
NITI Aayog, which is working in close cooperation with Ministries of Mines, Environment and Finance to find ways for a long-lasting solution to steel sector woes, is expected to give a compressive report in a couple of months, sources said.
NITI Aayog is also looking at the bank debts on the sector. On Tuesday, Finance Minister Arun Jaitley had expressed concerns in Parliament over the onslaught of cheaper steel imports and the inability of the sector to repay bank loan.
Source: DH News Service