Steel majors for hike in HR coils import duty

NEW DELHI, July 7: Four steel majors — Essar, Jindals, Llyods and Ispat – have joined hands for a common cause. In a representation to the government, they have sought increase in the import tariff on hot rolled coils from 25 per cent to 30 per cent.

The four companies have stated that 45 per cent of the cost of manufaturing steel is administered and the producers have no control over these costs. At the same time, all administered costs have risen continuously. For instance, the cost of coal has gone up to Rs 1,100 per tonne in 1997-98 from a level of Rs 400 per tonne in 1992-93. The fuel and transportation charges have doubled and cost of ore has gone upto Rs 700 per tonne. It was also pointed out that after the depreciation of the rupee, the imported HR coil stood at Rs 14,375 per tonne at a dollar of Rs 43 while the domestic price stood at Rs 17,248 per tonne at a dollar value of Rs 36.