Bokaro: The Union Budget proposed to reduce customs duty to 7.5 percent on imports of semi, flat and long products of non-alloy, alloy and stainless steel is going to hurt the industry, including the stainless steel segment. But still, Bokaro Steel Plant (BSL), which is a major steel producer and exporter, finds the budget will have a major positive impact on the demand for steel in the long run as it carries thrust on infrastructure development.
The steel major BSL, which is praised for its magnificent performance by contributing Rs 1002 crores to its parent company SAIL in third quarter, found the budget positive for the company. Thrust being given to capital and infrastructure development under the Atmanirbhar Bharat Abhiyan in the Union Budget along with other key decisions like the development of dedicated freight corridors in the railways, highway projects, affordable housing projects, and other measures will give a fillip to steel industries, including BSL.
SAIL, chairman, Soma Mondal said that the budget for 2021-22 has put emphasis on accelerating the growth momentum of the country by targeting infrastructural growth including road, rails, urban, power, ports, shipping, etc. The National Infrastructure Pipeline (NIP) incorporates 500 more new projects.
“The creation of Development Financial Institution will help address the funds requirements of different agencies. The announcement of the Production Linked Incentive Scheme, Vehicle Scrapping Policy, coverage of 1 crore more families under Ujjwala Yojana, etc. will boost domestic production. All these measures and thrust on infra development will have a major positive impact on the demand for steel in the long run,” said Mondal.
Finance Minister Nirmala Sitharaman, in her Budget 2021 speech, proposed to reduce customs duty on imports of semi-flat steel—used to make ships, bridges, line pipes, and other equipment—from 12.5% to 7.5%. The government also cut customs duty on longs, used to make rails and wire rods, from 10% to 7.5%.