Union Budget Proposals To Boost Steel Sector

The Union Budget presented by Finance Minister Nirmala Sitharaman recently in the Parliament have some significant projects and investments that are to be made in the construction, infrastructure, and railways sector.

Duty changes related to steel sector

♦ Basic Customs duty on calcined petroleum coke falling under tariff 2713 1210 and 2713 1290 is being reduced from 10 percent to 7.5 percent

♦ It has been observed that imports under Free Trade Agreements (FTAs) are on the rise. Undue claims of FTA benefits have posed threat to domestic industry. Such imports require stringent checks. In this context, suitable provisions are being incorporated in the Customs Act. In the coming months government shall review Rules of Origin requirements, particularly for certain sensitive items, so as ensure that FTAs are aligned to the conscious direction of our policy

♦ Government is also strengthening provisions relating to safeguard duties which are applied when surge in imports causes serious injury to domestic industry. Amended provisions shall enable regulating such surge in imports in a systematic way. The provisions for checking dumping of goods and imports of subsidized goods are also being strengthened for ensuring a level playing field for domestic industry. These changes are in line with the international best practices

Budget Highlights for steel industry

♦ Propose to provide ₹1.70 lakh crore for transport Infrastructure in 2020-21

♦ Accelerated development of highways would be undertaken. This would include development of 2500 km access control highways, 9000 km of economic corridors, 2000 km of coastal and land port roads and 2000 km of strategic highways

♦ Propose to provide 22,000 crore to power and renewable energy sector in 2020-21

♦ Launched the National Infrastructure Pipeline in December worth ₹103 lakh crore. It consists of more than 6500 projects across sectors and are classified as per their size and stage of development