July 20, 2008

Steel ministry wants finance minister to fast track steps to check prices

It is reported that union steel ministry has asked its finance counterpart to expedite the implementation of the measures that have been decided but not implemented yet to contain steel prices.

The proposed measures include bringing steel back under the Essential Commodities Act, 1955, suspension of futures trading in iron and steel on commodity exchanges and reclassifying the railway freight rate for iron ore.

Other steps that have not been announced yet include ensuring uninterrupted supply of electricity and railway rakes to small and medium steel producers to improve their capacity utilization and productivity. The proposal to reduce excise duty from 14% to 8% on various forms of iron as well as semi-finished products, bars, rods, angles and wires has also not been announced.

Another proposal was to improve availability of hot rolled coils by permitting its imports under the advanced licensing scheme against the export of cold rolled coils, galvanized and coated products, tubes, and pipes.