According to Steel Re-rolling Mills' Association chairman S S Beriwala, the existing import duty on billets and other inputs followed by countervailing duty amounting to 15 per cent was already so high that not a single tonne of billets or other re-rollable scrap was imported even in the coastal areas such as West Bengal.

With the imposition of eight per cent addiional import duty on the inputs, the steel re-rolling industry will be completely at the mercy of the integrated steel producers as eight per cent import duty has already beenlevied on the melting scrap resulting in heavy input prices for secondary steel producers, i.e. mini steel plants. In the absence of any firm policy relating to production and supply of semis the increase of eight per cent will hurt the steel re-rolling industry, a key industry, and no steel can be utilised before processing and re-rolling, he said. Integrated steel companies with plants located in the eastern region are happy that the finance minister has proposed some hikes in import duties on a number of steel items responding to their demands. The import duty on cold rolled steel, for example, has been hiked from the present 25 per cent to 30 per cent. On the one hand, this move is expected to reduce the dumping of CR steel from other countries and on the other, help the CR steel producers to a certain extent, at least for next three to four years, till the World Trade Organisation is fully operational, believe steel industry officials of the region. However, the steel industry was expecting another fiveper cent hike in import duties on CR steel. Had the demand been fulfilled, the industry would have got a level playing field, a senior steel industry official said.

Once the insfrastructure sector picks up, which is likely with a 35 per cent increase in plan allocation to the infrastructure sector, the steel industry would be able to derive substantial benefit from it, he said.

The managing director of Nilachal Ispat Nigam Ltd, Subrota Roy, welcomed the Budget for enhancement of import duty on CR coils. He said this will bring relief to the Indian steel industry which was badly hit last year due to dumping from CIS countries. According to him, Steel Authority of India Ltd, whose plants are located in the eastern region, will be the major beneficiary of this duty hike. However, he added, the decrease in the import duty on stainless steel melting scraps from 10 per cent to five per cent will hit its Salem Steel plant.