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Business News/ News / India/  Export duty hike: FICCI suggests 3 months exemption for steelmakers to taper off orders
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Export duty hike: FICCI suggests 3 months exemption for steelmakers to taper off orders

FICCI steel committee co-chair VR Sharma stated that there are about 2 million tonnes of steel orders in the pipeline where either Letter of Credits are established or the sales contracts are signed.

VR Sharma said that the supply of such orders at the given rate will be impacted due to the export duty imposed. (REUTERS)Premium
VR Sharma said that the supply of such orders at the given rate will be impacted due to the export duty imposed. (REUTERS)

After the hike in export duty on various steel products, V R Sharma, co-chair of the FICCI Steel Committee on Sunday requested the government to give three months to the domestic steel industry to clear their orders.

Sharma who is also the managing director (MD) of Jindal Steel and Power Ltd (JSPL) told PTI, "I suggest at least three months should be given to taper off orders and to supply the orders taken."

He highlighted that there are about 2 million tonnes of steel orders in the pipeline where either Letter of Credits are established or the sales contracts are signed.

Sharma said the supply of such orders at the given rate will be impacted due to the export duty imposed.

Although, Sharma appreciated the efforts of the government, however, he added that "a sudden export duty imposition will force steel mills to stop export bookings but what will happen to the orders taken or still in the pipeline. A three-month time will provide relief to the customers who are not at fault."

He pointed out that during the financial year ending March 2022, about 10 MT of steel was exported from India against an output of over 110 MT. He said, "various countries were looking towards India as an opportunity amid the Ukraine-Russia conflict."

Thereby, Sharma said, a three-month exemption will provide some relief to the players whose orders are in the pipeline.

On Saturday, the Centre increased export duty to 50% on iron ore and concentrates categories from 30% which is now applicable on lumps above 58% iron content. Further, iron ore pellets which currently do not attract any export duty - a 15% duty has been levied. This has been done to increase domestic availability.

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Published: 22 May 2022, 09:39 PM IST
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