Budget 2016 to help steel industry meet its growth target: T V Narendran, Tata Steel
KOLKATA: The budgetary proposals announced by the Finance Minister will help the industry meet its growth target and reach its full potential. However, the doubling of Clean Energy Cess from Rs 200 to 400 per ton would further increase the input cost for domestic producers, T V Narendran , MD Tata SteelBSE -0.04 % (India & SE Asia) said commenting on the budget proposals.
"The domestic steel industry will continue to play an important role to the Government of India's schemes of 'Make in India' and 'Smart cities' as it is a key material supplier to the allied industries. However, the industry has been bogged down by a deluge of imports and predatory pricing over the last 18 months. While recent interventions by Government of India has given some breather, long term measures to create a level playing field are required to firewall the domestic steel industry from global overcapacity and dumping ," he added.
Steel Industry is a significant contributor to India's GDP and is also pivotal to a number of allied industries and sectors such as- infrastructure, automobile, construction . Therefore it is important that the steel be brought within the ambit of the GST, Narendran said.