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Steel Ministry urges Finance Ministry to remove import duty on steel scrap

16 Nov 2017 Evaluate

The Ministry of Steel has said that it wants to bring down the import duty on stainless steel scrap to zero, along with ferro-nickel, after removal of import duty on nickel. In this regard, the steel ministry has already made a request to the finance ministry. Currently, both stainless steel scrap and ferro-nickel, key raw materials for stainless steel manufacturing, attract an import duty of 2.5%. 

Acknowledging the steps being taken by the ministry to protect the interests of domestic steel industry, president of industry body Indian Stainless Steel Development Association (ISSDA) K K Pahuja has said that if the import duty on ferro-nickel and stainless steel scrap is removed it will bring down the cost of production of stainless steel in the country. He also said that important elements like nickel and chromium are already present in stainless steel scrap, so the stainless steel industry will not need to get the two components, which will save time as well as cost of production. In addition, he noted that when stainless steel is made with mild steel, these two components are added, so, removal of import duty on stainless steel scrap along with ferro-nickel will be a win-win situation.

Adding further, Pahuja said that it will also create a new market for manufacturing of various stainless steel products such stainless steel pipes for use in water supply. He indicated that at present, in water supply galvanised steel pipes are used which catch leakages and are not corrosion-free so bacteria also develops in them and this leads to wastage of water and at times causes health issues. Besides, he said that the plastic pipes get crack and catch fungus and algae and added that introduction of stainless steel pipes in water supply and storage will address these issues. He noted that the life of stainless steel pipes will be more and maintenance cost will be near to zero.

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