Companies want support for capacity addition
and anti-dumping measures against substandard imports
India’s leading steel companies are adding capacity and hope the
upcoming Budget will facilitate their investments by taking measures for raw
material security, infrastructure development and fair trade.
Steelmakers will add around 38.5 million tonne per annum (mtpa)
of new capacity by Financial Year 2026-27 (FY2027). The government’s focus on
infrastructure, the largest user of steel, has boosted demand and companies
hope that the thrust continues in the Budget.
T V Narendran, managing director and chief executive officer
(CEO) of Tata Steel, said, the government should
continue backing infrastructure and ease of doing business.
Jayant Acharya, joint managing director and CEO of JSW Steel, said extending the concessional tax
rate of 15 per cent for new manufacturing companies would facilitate large
investments. The concession is valid till March 31, 2024.
“This will be required to offset the delays caused by the
pandemic and geopolitical tensions and the extension of the scheme is essential
because the investments in the steel industry are very large,” said Acharya.
Indian companies say the country is becoming a dumping ground
for imports from places with weaker demand. China accounted for the largest
share in finished steel imports in 2023, prompting Indian companies to push for
trade remedial measures.
Low-priced imports, especially from China and free trade
agreement countries, were putting pressure on Indian steel companies' margins.
“The investments planned by the steel industry towards creating self-reliance
and Make in India are large. We need to control this unfair trade with
effective trade remedial measures and hope that the government will act swiftly
on this,” said Acharya.
Dilip Oommen, CEO of ArcelorMittal Nippon Steel India (AM/NS
India), also called for a stronger focus on anti-dumping measures. He wanted
the Budget to have steps for raw material security, infrastructure investment,
competitive financial ecosystem, research and development incentives, export
promotion, skill development and environmental sustainability.