Govt mulls temporary tax on steel imports from China

The Indian government is currently reviewing a request to impose a temporary tax on steel imports from China, according to JSW Group Chairman Sajjan Jindal. He mentioned that the regulatory approval for the initial public offering (IPO) of JSW's cement business could be obtained by the end of January.

Speaking at an industry event in Bengaluru, Jindal expressed the industry's patience with the steel ministry in seeking protection against the dumping of Chinese steel in India. He highlighted efforts to convince the government to prevent Chinese steel from entering the country through Free Trade Agreement partners.

Jindal noted that the process of studying the request for a temporary tax is ongoing, with consultations involving the user industry. However, there has been no response from the ministries yet. Indian steel manufacturers face challenges due to increased imports of Chinese steel, which have affected domestic prices and company earnings.

Provisional government data indicates that finished steel imports into India reached a seven-year high of 5.7 million metric tons during the April-October period. Jindal warned that higher Chinese steel imports could result in thin margins for the steel industry, limiting surplus funds for investments and capacity expansion.

Earlier this month, Tata Steel CEO TV Narendran also expressed concerns that continuous steel imports could negatively impact the industry's investment plans. Additionally, Jindal anticipates that the Securities and Exchange Board of India (SEBI) will approve JSW Cement's proposed $477 million IPO by January 2025, following its previous hold in September.

(With Reuters inputs)

Published on: Nov 20, 2024, 4:53 PM IST