In its recommendation to the Union steel ministry, Indofer Society, the association of these steel companies have suggested a 5 per cent increase in customs duty on cold rolled (CR) coil and sheet from 35 per cent to 40 per cent.

Indofer has also asked for an increase of customs duty on hot rolled (HR) coil from 25 per cent to 30 per cent, and on plates from ship breaking to 20 per cent from 5 per cent.

The companies have recommended continuation of the minimum floor price regulation till alternative mechanism to restrict the import of cheap and unfair priced steel are in place.

Producers have also expressed concern on the import of seconds or defective steel under duty exemption scheme, as 50 per cent of the import are in the form of seconds or defectives.

Seconds have a major share in this, it is likely that prime material are being imported in the garb of seconds and defectives, with the objective of defeating the stipulated floor price of $302 per tonne. Further, seconds should not be allowed in the industrial and white goods sector as it will reflect the poor quality of finished goods.

Imposition of additional duty on import of seconds and defectives also figure in the recommendations. The additional incidence of duties will result in the higher landed cost of seconds and defectives and thereby be a fiscal deterrent for imports.

Manufacturers have expressed concern about import against advanced licences, as these imports are being sold in the domestic market. The recommendations have sought for restrictions in exemption for anti-dumping duties on imports against advance licences.

The memorandum says that imports against advance licence should be exempt from duties only if they are used for export or are imported by 100 per cent export oriented units in the free trade zones.

At present, in respect of products subject to dumping duties if they are imported against advance licence either for purpose of export or as replenishment. The recommendations ask for the deletion of provision of replenishment as there is no nexus with regards to import and export of resultant products.

The budget recommendations state that reduction of excise duty on galvanised items will go a long way in boosting demand for steel, adding that the loss of revenue would amount to Rs 70 crore, which can be made up by substantially large sales volumes as a result of increased demand.

Duty on zinc have been sought to be reduced from 30 per cent to 20 per cent, as it forms the base metal for further processing in industries like galvanising, alloy industry, batteries, food processing and fertiliser.