Domestic stainless steel industry, which has been reeling under an onslaught of cheap imports since long, has urged the government to raise the import duty on such products to 12.5 per cent. Industry body, India Stainless Steel Development Association (ISSDA) has pointed that since 2011-12, inbound shipments have grown by 50 per cent and stainless steel flat product imports hit a record 5.32 lakh tonne (LT) in 2015-16, which is 25 per cent of the total domestic demand of about 24 LT.
ISSDA requesting the government to protect the industry said that similar to steel, stainless sector is also facing a spate of cheap imports that now accounts for one-fourth of the domestic consumption and it too needs protection, asking the government to raise the basic customs duty (BCD) on finished stainless steel flat products from 7.5 per cent at present to 12.5 per cent, which is on par with that on carbon steel.
It has urged the government to bring the import duty on several raw materials used in making stainless steel to zero and demanded imposition of a provisional countervailing duty for hot rolled and cold rolled flat stainless steel products from China, as of the total 5.32 LT in last fiscal, 50 per cent alone came from China.
Pressing the point further the industry body said that stainless steel producers have invested around Rs. 35,000 crore towards modernisation and capacity expansion since 2000, which will be of no use if the government does not support the industry at this juncture.
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