NEW DELHI, Sept 5: Commerce and Industry Minister Piyush Goyal on Thursday suggested discussions on border adjustment tax with top steel industry leaders to promote sustainable manufacturing in the sector.
He also asked the industry to target 500 million tonnes of steel production in the next 10 years. At present, the industry is eyeing 300 million tonnes by 2030.
The minister suggested the industry find newer and better ways on lowering carbon emissions and promoting high productivity and quality steel in the country.
“Let’s try and utilise AI (artificial intelligence) to optimise our production, reduce waste, and improve efficiency across the value chain and work towards a circle economy in a bigger way,” he said, while addressing a steel conclave virtually.
He suggested that 4-5 top leaders of the steel industry can sit with him on this important subject for deliberations.
The minister added that the government was not able to extend the benefits of the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme to the sector due to a shortage of funds.
“I think there’s another very important subject that I have made a lot of effort on in the past but sadly could not succeed. Let’s make one more effort. On the Border Adjustment Tax, electricity duty, iron ore duties, when you are exporting steel, we are loaded with these taxes,” he said.
Goyal said that imported steel which comes into India doesn’t have to pay all these taxes.
“Border Adjustment Tax is a WTO (World Trade Organization) compliant mechanism, which if all the industries – CII, FICCI, Assocham – everyone take out, we may be in a position to get traction and get it also into the country,” he said.
“Imports, even from FTA (free trade agreement) countries at least, will be alluded with the similar electricity duty, coal cess, any additional state levies or taxes that you’re not getting remitted, which are not being charged in other countries, can be adjusted through a border adjustment tax. So let 4-5 of us, sit down…And take this dialogue forward,” Goyal added.
His statement was in response to ISA president Navin Jindal’s concerns on the steel industry needing support and protection from imports happening into India at predatory prices from FTA countries.
“China has set up capacities in those countries meant to export to India and exporting into India at huge losses and that is damaging the Indian steel industry,” Jindal said.
Goyal also said that Korea and Japan consume steel made by their own steel plants, and give them preference even at times, at a higher cost “whereas sadly many friends in our industry don’t have a similar approach”.
He asked the industry to inform the government of any unfair trade practices in other countries so that India can take steps to deal with those barriers.
“I’m keen to know more from you what we can do…We may retaliate, may even take some action in such instances, to curb any irrational imports,” Goyal said.
The Directorate General of Trade Remedies, he said, has initiated an inquiry into the surge of steel imports from Vietnam.
“I can assure you that we are with you whatever it takes to get the steel industry rocking, helping India grow, adding new jobs to the India growth story, and in the long run, becoming provider of steel, not only to India, its infrastructure demands, auto sector and industry, but becoming a provider of steel to the world,” Goyal stated.
The minister assured the industry that the government is always available to promote ease of doing business through the National Single Window Clearance system and to safeguard their interest from unfair practices of other countries.
He also said that India has not signed any FTA without 100 per cent concurrence from the steel industry.
“We put up stringent rules of the game norms so that you are not discriminated against,” he added.
In July, the European Union (EU) suggested that India can devise its own mechanism instead of paying the carbon tax to the EU.
Goyal had said that the ministry would consider the EU’s suggestion and come up with whatever is good for the Indian industry and for the people.
He added India is in dialogue with the EU on the tax or Carbon Border Adjustment Mechanism (CBAM).
As per reports, an EU delegation has suggested to New Delhi that India could implement its own carbon tax and reduce carbon emissions.
The EU has decided to impose a CBAM, or carbon tax, which will come into effect from January 1, 2026, but from October this year, domestic companies from seven carbon-intensive sectors, including steel, cement, fertiliser, aluminium and hydrocarbon products, would have to share data with regard to carbon emissions with the EU.
India has strongly criticised the move and is in dialogue with the EU on the issue. (PTI)
Follow our WhatsApp channel
