Fillip to ferro alloy sector should not be countervailing: Steel Min director

27 Feb 2017

With the ferro alloy sector facing challenges from competition from cheap imports from Malaysia and Indonesia, the steel ministry is of the view that any export incentives which might be given should not be countervailing. "Export incentives to the ferro alloy sector like from the Merchandise Exports from India scheme or any other scheme.
But those schemes should not be countervailed by any other country and cannot be challenged in any of the WTO forum", steel ministry Director Anupam Prakash said. He said that FTA with Malaysia and Indonesia would be challenges in the coming years, adding that the ferro alloy industry would have to increase export competitiveness, improve production process and lower raw material inputs.
The ferro alloy industry, which consumes power as a major component of raw material cost, had been lobbying for neutralisation of electricity duty under GST.
The official said that among the states where ferro alloy industry was located, it had been seen that only in Andhra Pradesh power tariff reduction was possible. "This is a good signal as this will bring down the tariff in other states due to competition", he said at a ferro alloy seminar here today.
He said that the issue of neutralisation of electricity duty under GST was being taken up by the steel ministry with the finance ministry.
Regarding steel, he said that the ministry was taking steps to boost demand for steel from the consumption side. "A developed steel industry would also mean a good ferro alloy industry", he said. (PTI)