Mumbai: Industrial body Sponge Iron Manufacturers Association (SIMA) has proposed an increase of basic customs duty on steel melting scrap from 0-10% in Budget 2013. “India’s import of scrap may touch around 8 million tonnes in the current financial year leading to valuableforeign exchange outgo of the order of about $3.5 – 4 billion and will therefore contribute significantly in the much talked current account deficit (CAD),” said SIMA in its official statement.
The inability in meeting the steel production as per the demand inflow has contributed mostly to the substantial increase in the import of steel melting scrap, opines SIMA. “Such huge import of scrap is killing Indian sponge iron industry which is already burdened with the rising cost and restricted availability of inputs like iron ore, non coking coal and natural gas.”
EPC News Bureau
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