Govt decision to remove export duty on steel products will help makers: JSPL MD | Mint
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Business News/ Companies / People/  Govt decision to remove export duty on steel products will help makers: JSPL MD
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Govt decision to remove export duty on steel products will help makers: JSPL MD

The top domestic steel makers, including JSPL, Tata Steel and JSW Steel, have either reported losses or posted a sharp fall in their net profits citing adverse market conditions in the July-September quarter.

JSPL's total revenue from operations increased to ₹13,611.71 crore from ₹8,148.77 crore. (MINT_PRINT)Premium
JSPL's total revenue from operations increased to 13,611.71 crore from 8,148.77 crore. (MINT_PRINT)

The recent government's decision to cut the export duty on steel products and iron ore to nil with effect from November 19, 2022, will help improve the financial and operational performance of steel players, news agency PTI quoted Jindal Steel and Power Limited (JSPL)'s MD Bimlendra Jha said.

Citing various factors, including high input costs, steel firms faced distress in the July-September quarter of the ongoing financial year, Jha added.

Sharing his opinion about the impact of the government's action, Jha said, "It was a much awaited move which will improve financial and operational performance of steel makers."

ALSO READ: JSPL’s Q2 results aid investor confidence

The top domestic steel makers, including JSPL, Tata Steel and JSW Steel, have either reported losses or posted a sharp fall in their net profits citing adverse market conditions in the July-September quarter.

Earlier, the import duty on anthracite/PCI, coking coal and ferronickel -- used as raw materials in the steel industry -- was hiked to 2.5 per cent, while for coke and semi-coke it has been raised to 5 per cent, from 'nil' earlier.

"I am sure as when the coking coal prices will go too high, the government will remove the duty because India is heavily dependent on imported coking coal for steel production," he added.

As per details, coking coal and iron ore are the two key raw materials used in steel making.

Though iron ore is domestically available, for coking coal, India is dependent on imports. The country meets 85 per cent of its coking coal requirement through imports, mainly from Australia.

With PTI inputs.

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Published: 20 Nov 2022, 05:21 PM IST
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