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In a liberalised environment the Government does not intervene directly in the market to influence prices. The market forces determine the prices. However, during the last two years the Government, through its policy initiatives, has taken several steps to ensure availability of steel and stabilise the price in the domestic market which inter-alia include the following:
i) The customs duty on non-alloy steel was reduced from 15% to 10% in the Union Budget 2004-05 and has been further reduced to 5% in August 2004.
ii) The customs duty on alloy steel has been reduced from 15% to 10% in the Union Budget 2004-05.
iii) The customs duty on refractory raw materials has been reduced from 20% to 15% in the Union Budget 2004-05 and further to 10% in the Union Budget 2005-06.
iv) The customs duty on melting scrap has been brought down to ‘Zero” from 5% in August 2004.
v) The customs duty on ships for breaking has been brought down from 15% to 5% in August 2004.
vi) Reduction in DEPB rates on steel items and fixation of value caps for all items of iron and steel and ferro alloys.
vii) Increasing allocation of iron and steel materials for the SSI sector.
As regards steel prices going unchecked, the Government is continuously monitoring the prices and would take further appropriate steps as and when required.
This information was given by the Minister of Chemicals & Fertilizers and Steel, Shri Ram Vilas Paswan in a written reply to a question in Rajya Sabha today.
BJ:PM
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