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Indian Steel Mills To Supply Steel To Export Oriented Units Under Advance License Scheme - Report

Steel News - Published on Thu, 13 Jun 2019

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Financial Express, citing three sources who attended the meeting, reported Indian steel makers like JSW, SAIL and Tata Steel have agreed to charge these bulk consumers the same price for steel at which they are exporting it to other countries. At a crucial meeting attended by commerce and industry minister Piyush Goyal, steel minister Dharmendra Pradhan, top executives of steel companies, engineering goods exporters and others it was decided that steel will be made available at this rate to only those bulk consumers who would export finished goods after value addition and not sell these in the domestic market. The steel will be made available to these bulk consumers under an advance license scheme.

Engineering goods exporters has complained that local steel producers are charging them 15-20% more than the price at which the latter are shipping out to other countries, making their products uncompetitive in the global market. However, steel-makers contest such a claim, saying the premium could at best be 5%. Engineering Export Promotion Council of India chairman Mr Ravi P Sehgal told FE that “If the steel makers are exporting at a certain price, why should they charge much higher price to domestic consumers who are using the raw materials for exporting finished goods? This discrimination against domestic consumers like us must end. It’s a huge relief ensured by the government’s timely intervention.” Against the global price of USD 450 to USD 500 per tonne, for instance, prices of a particular steel variety in the domestic market were ruling at USD 600 per tonne.”

The objective behind the latest move is to ensure that engineering goods exports double in the next five years (from around USD 81 billion in FY19) and touch USD 200 billion by 2030.

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Posted By : Ratan Singh on Thu, 13 Jun 2019
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