The Government has taken the following steps to provide support to the domestic steel industry:
i. To ensure that only quality steel is produced and imported, Government has notified Steel and Steel Products (Quality Control) Orders dated 12.03.12 and 04.12.15.
ii. Govt. has notified MMDR, Amendment Act, 2015 to streamline grant of Mining Leases in order to maintain sufficient availability of raw materials for various sectors including steel sector.
iii. To provide level playing field to the domestic steel producers, Govt. has imposed Minimum Import Price (MIP) on 66 steel products.
iv. Government has imposed in June.2015, an Anti- Dumping Duty 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).
v. 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 semi-finished steel from 7.5% to 10%.
vi. To curb cheap imports of steel products into the country the Government has imposed the Minimum Import Price (MIP) on 173 HS Tariff lines concerning steel products vide Notification no. 38/2015-20 dated 5th February, 2016 for the period of six months. Further MIP on 66 HS Tariff lines was continued for period of two months vide Notification No. 20/2015-20 dated 4th August, 2016 and further extended upto 4th December, 2016 vide Notification No.30/2015-20 dated 4th October, 2016. Government has imposed in June, 2015, Anti-Dumping Duty 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).
The Government proposes to revisit the existing National Steel Policy. It is at conceptual stage.
Based on the decision taken in the meeting of High Level Committee on Manufacturing held on 09.07.2013 to achieve the ambitious target of 300 Million Tonne Per Annum (MTPA) steel production capacity by 2025, a concept of Special Purpose Vehicle (SPV) was enunciated.
Four mineral rich states, namely, Chhattisgarh, Odisha, Karnataka and Jharkhand were identified for setting up of Integrated Steel Plants through SPV route, Memorandum of Understanding (MoU) has been signed with the State Governments of Jharkhand and Chhattisgarh.
The global glut and surge in the import prices of steel has adversely affected the domestic steel industry and it has resulted in erosion of profits of domestic steel companies and has resulted in Non- Performing Assets (NPAs) of domestic steel companies.