Lok Sabha Question No. 150 (UNSTARRED), answered on 2016-04-25
Subject: Cheap Steel Import
Ministry: STEEL
Asked by: VINAYAK BHAURAO RAUT, ANANDRAO  ADSUL, SHOBHA KARANDLAJE, NAGARAJAN P., NAGENDRA KUMAR PRADHAN, RITI PATHAK, RAHUL KASWAN, S.P. MUDDAHANUMEGOWDA

## LOK SABHA UNSTARRED QUESTION NO.150 FOR ANSWER ON 25/04/2016

## CHEAP STEEL IMPORT

150. SHRI VINAYAK BHAURAO RAUT: SHRI ANANDRAO ADSUL: KUMARI SHOBHA KARANDLAJE: SHRI P. NAGARAJAN: SHRI NAGENDRA KUMAR PRADHAN: SHRIMATI RITI PATHAK: SHRI RAHUL SHEWALE: SHRI S.P. MUDDAHANUME GOWDA:

Will the Minister of STEEL be pleased to state:

- (a) whether the Government proposes to impose new steel import duty in view of cheap steel import from China;
- (b) if  so,  the  details  thereof  including  the  extent  to  which  the  domestic  steel manufacturers are likely be benefied therefrom; and
- (c) the other steps taken/proposed to be taken by the Government to encourage and safeguard the interest of the domestic steel manufacturers?

## ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF (SHRI VISHNU DEO SAI)

STEEL AND MINES

- (a)&(b): There is no proposal to impose new steel import duty, at present.
- (c) In order to protect the interests of country's steel industry, the Government has taken  the following steps :
- (i) To  ensure  that  only  quality  steel  is  produced  or  imported,  Government  has notified Steel & Steel Products (Quality Control) Orders, 2012 dated 12.03.2012 and Steel & Steel Products (Quality Control) Orders, 2015 dated 15.12.2015.
- (ii) To increase availability of Coal and Iron ore for the domestic steel industry:-
- (a) Notified  the  Coal  Mines  (Special  Provisions)  Amendment  Act,  2015  on 30.03.2015 to streamline coal block allocations.
- (b) Notified the Mines and Minerals (Development and Regulation) Amendment  Act,  2015  on  27.03.2015  to  streamline  grant  of  Mining Leases.

Contd………..2/-

- (iii) The  Union  Budget  2015-16  had raised  peak  rate  of  basic  customs  duty  on both flat and non-flat steel to 15% from 10%.
- (iv) Hiked import duty on  ingots & billets, alloy steel (flat & long), stainless steel (long) and non-alloy long products from 5 % to 7.5%  and non-alloy and other alloy  flat  products  from  7.5%  to  10%.    This  was  further  revised  in  August, 2015 on flat steel from 10% to 12.5%, long steel from 7.5% to 10% and semifinished steel from 7.5% to 10%.
- (v) In  November  2014,  the  import  of  rebars  was  ensured  strictly  as  per  Steel Product Quality Control Order 2012, to block influx of cheap imports of boron added rebars.
- (vi) In  June,  2015,  an  Anti-Dumping  Duty  for  five  years  on  imports  of  certain variety  of  hot-rolled  flat  products  of  stainless  steel  from  China  ($  309  per tonne), Korea ($ 180 per tonne) and Malaysia ($ 316 per tonne).
- (vii) Imposed, Safeguard Duty of 20% in March 2016 on hot-rolled flat products of non-alloy and other alloy steel, in coils of width of 600 mm or more.
- (viii) Imposed,  vide  its  notification  dated  05.02.2016,  the  Minimum  Import  Price (MIP)  condition  on  173  steel  products.  Imports  of  items  covered  under  this notification will not be allowed into the country below the notified price.
- (ix) For reducing the stress in steel sector, RBI has extended 5:25 scheme in July 2015,  whereby longer amortization period for loans to projects in infrastructure and core  industries  sectors,  say  25  years,  based  on  the economic  life  or  concession  period  of  the  project,  with  periodic  re-financing, say every 5 years, is allowed.

********