The carcinogenic curse of asbestos may turn out to be a budjetary boon for galvanised steel. Latching on to the debate on the French aircraft carrier Clemenenceau, the Indian steel sector has demanded that an exo-friendly substitute,galvanised corrugated steel sheets that are 100% recyclable be promoted in the country, particularly in the rural sector. To boost domestic production, however, the inverted duty structure due to the 10% duty structure on zinc -the main raw material for galvanised sheets -has to be corrected, as imported galvanised sheets -has to be corrected, as imported galvanised sheets attract only 5% customs duty. Zinc is levied 10% ad valorem duty. The Indian Steel Alliance (ISA) and the Cold Rolled Steel Manufacturers Association (CORSMA) has also asked for a reduction in excise duty on galvanised sheets from the present 16% to atleast 8% in the coming Budjet.
Excise duty, reduced form 16% to 12% in the last budjet, was increased within months ,as high prices continued to prevail and consumption did not increase. The steel ministry that is steering a new national steel policy has already committed to increasing the per capita rural consumption of steel to 4kg per annum by 19-20- from the present level of 2 kg -implying a CAGR of 4,4%. It has taken up the issue with the finance of ministry ,as galvanised steel is an eco-friendly substitute for asbestos that is not only being imported, but is widely used for roofing (60% ) and water tanks (20%) in rural areas. " Consumption is growing at an alarming rate of 12% per annum ,and over 30 asbestos cement plants and 672 small scale units are engaged in finished product manufacture," the ISA has said. It wants a ban on asbestos mining, reclassification of imports under restricted list and labelling as well.
|
|
|
|
|
| Posted : 2/17/2006 |
|
|
|
|
