Safeguard duty on steel, aluminium ruled out

New Delhi, Aug. 29 The Government has turned down a demand for imposition of safeguard duty on imports of certain steel and aluminium products. The Government, unlike steel producers, did not see a threat to the domestic industry from imports. The Standing Board on Safeguard, headed by the Commerce Secretary, Mr Rahul Khullar, rejected the recommendations of the Directorate General of Safeguards (DGS). The DGS had suggested making the difference between the price of imports and a benchmark landed cost at about Rs 27,000 a tonne as the safeguard duty for certain steel products. By default Indian steel producers point out that India has become the number three producer by default, being one of the few markets where growth is still positive. India, they believe, will be a vulnerable destination for international steel-makers whose plants are lying half utilised. Opposition from users Steel users, however, had opposed a safeguard duty. The Steel Secretary, Mr P. K. Rastogi, who also attended the meeting, said that all aspects had been considered, and the board had not found sufficient reasons for safeguard duty on imports of key steel and aluminium products.