The steel ministry is in discussions with the finance ministry to explore policy measures aimed at curbing increasing imports of steel, including imposition of a minimum import price and protecting the domestic industry, Union minister HD Kumaraswamy said on Wednesday.
Acknowledging that tackling imports of steel was the “main issue”, the steel minister said efforts were also being made to strengthen the domestic alloy industry.
Asked if a minimum import price could be imposed on steel, the minister said, “Definitely, we will convince the finance ministry. A preliminary discussion is already going on. I have confidence we will be able to convince.”
Addressing the international ferro alloys conference, Kumaraswamy highlighted the problems plaguing the domestic industry such as high power tariffs and inadequate availability of raw materials, including quality coke
.
India’s ferroalloys industry spends 40-70% production cost on power consumption, according to the Indian Bureau of Mines.
Industry representatives say power tariffs in India are higher than in countries like Malaysia, affecting competitiveness and profit margin of ferroalloy producers.
“The ferroalloy industry is energy intensive. Power tariffs in India are almost three times as high as in Malaysia,” TK Pattnaik, secretary general, Indian Ferro Alloys Producers Association, told ET.
He also said that he is determined to breathe life into Rashtriya Ispat Nigam Limited, which has been facing protests from various parties against the proposed privatisation of its Visakhapatnam steel plant.
