The public sector steel manufacturing industries under Steel Authority of India Limited (SAIL) and Rashtriya Ispat Nigam Limited (RINL) are affected by factors like slow growth in steel demand, falling prices on account of global steel glut leading to import of steel at very low prices resulting in surge in steel imports during 2014-15 and 2015-16.
The Government of India took various steps to support the domestic steel sector, some of which are as given below:
i. Increase in peak rate of Custom Duty on steel to 15%. Effective rate of import duty was increased in phases to 10% on Long products and 12.5% on Flat products from pre-revised level of 5% and 7.5% respectively.
ii. Against a petition by the domestic steel producers, Safeguard duty on HR Coils of 20% notified in September, 2015 provisionally and final notification issued for the same in March, 2016 extending 20% Safeguard duty up to September, 2016. Thereafter, phased reduction to 18% (till March, 2017), 15% (till September, 2017) and 10% by March, 2018.
iii. The Government of India notified Minimum Import Price (MIP) on select steel products (5th February, 2016) and further extended it on certain steel products for two months with effect from 5th August, 2016 and again for two months with effect from 5th October, 2016.
iv. Provisional Anti-dumping duty notified on import of flat products (Hot Rolled & Cold Rolled) and on Wire Rods from China, Japan, Korea, Russia, Brazil, Indonesia & Ukraine vide notifications dated 8th August, 2016, 17th August, 2016 and 2nd November, 2016.
v. Government amended the Steel and Steel Products (Quality Control) Order, 2012 from time to time to ensure that only quality steel is imported into India.
