Forward of the Price range, the Indian Stainless Metal Improvement Affiliation (ISSDA) has urged the federal government to take away import obligation on ferro-nickel and chrome steel scrap.
At present, ferro-nickel and chrome steel scrap entice fundamental customs obligation (BCD) of two.5 per cent.
In its suggestions to Finance Ministry for the upcoming Price range for the monetary 12 months 2021-22, ISSDA has additionally sought elimination of import obligation on graphite electrodes.
ISSDA mentioned, “it has appealed to exempt the two.5 per cent BCD levied whereas importing key uncooked supplies, together with ferro-nickel and chrome steel scrap”.
At current, each the uncooked supplies are unavailable within the nation, making their import obligatory, it mentioned.
Elimination of obligation on ferro-nickel and chrome steel scrap is a long-standing demand of the trade. The Ministry of Metal has additionally at occasions batted for zero obligation on this stuff.
Chrome steel trade meets the majority of its nickel necessities by ferro-nickel and chrome steel scrap route.
ISSDA has additionally sought elimination of current 7.5 per cent import obligation on graphite electrodes, a vital part in chrome steel manufacturing which constitutes a significant share of enter value.
Moreover, it has sought a rise in import obligation on chrome steel flat merchandise to 12.5 per cent to deliver it at par with carbon metal merchandise and test undue imports.
These measures won’t solely enhance home manufacturing but in addition curb “undesired” chrome steel imports, it mentioned.
ISSDA President Okay Okay Pahuja mentioned, “Chrome steel trade is able to contribute to the ‘Atmanirbhar Bharat’ imaginative and prescient. That is the optimum time for the federal government to cease contemplating important uncooked supplies as a income and supply stimulus to home manufacturing by exempting duties on importing vital uncooked supplies.”
The recommended measures, if taken, will enhance the competitiveness of the home trade and in flip, present impetus to the MSME section, which has a 40 per cent share within the home chrome steel trade, he added.
Moreover, undue imports have harmed the home trade which is working at 60 per cent of its capability and is financially harassed after COVID-19 associated disruptions, Pahuja mentioned.
“We request the federal government to rationalize the obligation construction with a view to catalyze the revival of this sector that has immense potential to generate further jobs,” he mentioned.