Cut import duty or impose levy on exports of steel: Prasada
Concerned over the rising steel prices, new Minister of State for Steel Jitin Prasada has suggested slashing of import duty on the commodity or imposing a levy on exports to ensure availability of the alloy for all.
By PTI |
NEW DELHI: Concerned over the rising steel prices, new Minister of State for Steel Jitin Prasada on Monday suggested slashing of import duty on the commodity or imposing a levy on exports to ensure availability of the alloy for all.
"Steel Prices is a matter of concern. I suggest that import duties be lowered or export duty be imposed to ensure availability of steel for all," new Minister of State for Steel Jitin Prasada said here.
Prasada today assumed charge as Minister of State, following reshuffle of Union council of ministers. He reasoned that steel demand was growing corresponding with the growth of Indian economy.
Prasada's comment assumes significance in the back drop of Union Minister for Steel Ram Vilas Paswan's letter to Prime Minister Manmohan Singh.
After a tag of war with the government, steel producers had last week reduced prices to ensure availability of steel for the common man.
Prices of steel had increased by about Rs 8,000 in the past three month prompting Paswan asking the Prime Minister to initiate a slew of measures to contain prices, including setting up a regulator, abolishing import duty on steel, imposing 10 per cent export duty on the alloy, withdrawing Duty Entitlement Pass Book (DEPB) scheme benefits and reclassifying steel as an essential commodity.
During the past fortnight, the Government withdrew DEPB benefits for the steel maker which will deplete their coffers by about Rs 600 crore.
The Government has not made up its mind on setting up a regulator, yet it is understood that talks were afoot among various ministries to explore the same.
"Steel Prices is a matter of concern. I suggest that import duties be lowered or export duty be imposed to ensure availability of steel for all," new Minister of State for Steel Jitin Prasada said here.
Prasada today assumed charge as Minister of State, following reshuffle of Union council of ministers. He reasoned that steel demand was growing corresponding with the growth of Indian economy.
Prasada's comment assumes significance in the back drop of Union Minister for Steel Ram Vilas Paswan's letter to Prime Minister Manmohan Singh.
After a tag of war with the government, steel producers had last week reduced prices to ensure availability of steel for the common man.
Prices of steel had increased by about Rs 8,000 in the past three month prompting Paswan asking the Prime Minister to initiate a slew of measures to contain prices, including setting up a regulator, abolishing import duty on steel, imposing 10 per cent export duty on the alloy, withdrawing Duty Entitlement Pass Book (DEPB) scheme benefits and reclassifying steel as an essential commodity.
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During the past fortnight, the Government withdrew DEPB benefits for the steel maker which will deplete their coffers by about Rs 600 crore.
The Government has not made up its mind on setting up a regulator, yet it is understood that talks were afoot among various ministries to explore the same.
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