Government's decision to cut export duty by 15 per cent on long steel products, mainly used in the construction sector, got a mixed response from the steel industry.
While a section of steel producers feel the move would not help the industry much as it has come at a time when demand and prices of the alloy have nosedived in global market due to financial recession, others contend it saying it would open up avenues for foreign shipments.
"The duty roll back would not have a substantial impact, as volume of exports of long products from India is minimal," SAIL Chairman S K Roongta said.
Nevertheless, he termed the move as a "right one", saying it would provide a little respite to the industry, which can think of exporting some quantities.
Of India's total steel exports of around 7 million tonne in the last fiscal, long products contributed just over 25 per cent.
Industry watchers, however, said the duty roll back would to some extent benefit producers like SAIL, RINL and Tata Steel, which account for 30 per cent of the total market in the organised sector.
"It is a welcome move. We had made a request for this to the government keeping in mind the unprecedented situation in the world, which has also affected the Indian steel sector," RINL CMD P K Bishnoi said.
He, however, added that much more needs to be done by the government to give a fillip to the domestic steel industry, which is passing through toughest of the times due to slump in demand and falling prices.
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