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Steel industry demands removal of import duty on ferro-nickel, stainless steel scrap

17 Jan 2018 Evaluate

Ahead of the Union Budget that will be presented on February 1, the stainless steel industry has asked the government to remove import duty on both ferro-nickel and stainless steel scrap. At present, the import duty on Ferro nickel and stainless steel scrap is 2.5 percent. The Indian Stainless Steel Development Association (ISSDA) has sought removal of customs duty on key raw materials used in producing stainless steel, in its pre-budget wish list. It said that though the government had removed customs duty on pure nickel in the previous Budget, it didn't help the industry much since most of nickel used by stainless steel makers is in the form ferro-nickel. 

Therefore, industry body demanded that the same relief should now be extended to ferro-nickel. It noted that the raw material has to be necessarily imported because India hardly has any nickel resources. Further, it pointed out that since all the stainless steel is produced through electric furnaces, stainless steel scrap is the main raw material which also provides cost effective source of alloying elements like chrome and nickel. It added that the scrap is also not available in the country and has to be imported. Thereupon, the ISSDA has also asked the government to bring the customs duty for stainless steel scrap to zero from the present 2.5 percent.

ISSDA President K K Pahuja further said that it is absolutely necessary to preserve competitiveness of Indian stainless steel industry at a time when government is building new trade relations with other countries and they appeal to the Finance Ministry to remove basic custom duty on both ferro-nickel and stainless steel scrap. Besides, Steel Secretary Aruna Sharma had earlier said that along with ferro-nickel, the steel ministry had pitched for bringing down import duty on stainless steel scrap to zero. She also said that the steel ministry had already made a request to the finance ministry in this regard.

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