With another Union fiscal budget round the corner, the Indian Steel Alliance, an association of top hot-rolled coil steel producers, has presented a charter of demands to the finance ministry, ranging from rationalisation of indirect taxes to taking measures to promote steel use, the ISA.
The ISA has demanded that a Buy India Act be implemented. This act will ensure that only those steel products, which are not locally available, enjoy the benefits of a concessional or zero duty.
It will also mean that the customs duties on all other imported products, which are locally available, will be higher.
It recommended that the concessional duties should not be applicable on constructional steel items like re-bars, structurals and plates, which are locally manufactured.
Amid fears that the railway freight rates may be raised this year, the ISA has recommended that there be no enhancement in freight rates through a cross subsidisation of passenger fares, in addition to reducing the minimum chargeable distance to 50 km from 100 km currently.
In order to give a boost to the usage of galvanised corrugated sheets for housing purposes in rural areas for the low income groups, the ISA has, in its charter of demands, suggested that the excise duties on GC sheets be halved to 8 per cent.
The ISA said the additional demand generation for GC sheets would compensate the loss of revenue to the government.
The ISA also suggested that the government take up the lead in steel demand generation by increasing public investment in infrastructure.
They added that the government increase the fully use the funds earmarked for investment in the infrastructure areas.
To make this happen, last mile projects should be given special thrusts, in addition to removing the bottlenecks like projects clearance and financial closure, which are essential for enhanced private sector investment in infrastructure.
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