Budget 2022: Key recommendations for iron and steel sector

The Steel Ministry has pitched for lower or nil import duties on key raw materials needed for the iron and steel production in India. CNBCTV18 learned that the ministry has recommended for nil duty on anthracite, met coke, cooking coal, limestone, dolomite - all key ingredients for the production of steel.

The revenue impact on account of nil duty will be close to Rs 2,000 crore but the ministry has backed its request by highlighting that the revenue loss will be compensated by an increase in steel production and thereby increasing goods and services tax (GST) and corporate tax collection.

Sources said the ministry has also sought nil duty on import of ferro-nickel from the current 2.5 percent duties and 5 percent reduction in customs duty on granite electrodes from the current 7.5 percent.

The ministry has also pitched for the inclusion of the steel industry under remission of duties and taxes on exported products (RoDTEP) which may bring advantage of 9-10 percent on the cost and help the steel industry become more competitive globally.

The industry has also sought the inclusion of specialty steel products that are imported as part of HS codes to ensure categorisation. Citing that product categorisation will help effective implementation of Production Linked Incentive (PLI) scheme for the specialty steel. The cabinet approved Rs 6,322 crore PLI scheme in July this year. The scheme’s objective is to boost production and attract investment of about Rs 40,000 crore in specialty steel.