Press Trust of India reported that Secondary steel industry body All India Induction Furnaces Association (AIIFA), which represents electric induction melting furnace industry, has urged the government to remove 2.5% import duty onsteel melting scrap in the budget 2018.
AIIFA Secretary General Kamal Agarwal said “As per the steel ministry data around 28 million tonnes of steel was produced from scrap in 2015-16 out of total 52 million tonnes steel that was produced through electric route. India imports close to 7 million tonnes of scrap which leaves with a need to internally generate over 23 million tonnes of steel scrap annually. Import of melting scrap has become very necessary due to insufficient availability of domestic scrap and removal of import duty will help lower their production cost.”
He said “To support small and medium steel enterprises which are dependent up to 60 per cent of their raw material requirements on imports, the government should abolish the customs duty for making them competitive against cheapersteel imports.”
He added “The necessity of importing scrap has also become important because of the enforcement of quality control order passed by the steel ministry restricting production and sale ofsteel whose quality does not meet a certain standard of metallurgical composition and mechanical properties of stress and elongation.”
Source : Press Trust of India