Steel prices to fall, says Paswan

The reduction of customs duty on steel melting scrap would help in making available rods and rounds, used by the common man in construction activity, and was an issue close to his heart, said the union minister for steel, chemicals and fertilizers Ram Vilas Paswan.

The minister had also assured the secondary steel manufacturers in the steel consumer's council meeting held last year that he would take up the issue with the finance ministry, and expressed happiness that the same has been reflected in the Union Budget 2008-09.

The reduction of central sales tax to 2 per cent from the existing 3 per cent would further aid in making steel available at reduced rates to the consumers, he opined. Steel manufacturers like Jindal Steel and Ispat have already expressed their willingness to pass on the effects of the duty cut to consumers, as suggested by the finance minister yesterday.

Expected price cuts are to the tune of Rs.500 to Rs.600 per tonne.

Reduction of customs duty on project import of capital goods would boost steel investments in a large way, he said. This would help the existing steel majors who have embarked on a major expansion cum modernization programme as also new investors in this sector.