DECEMBER 20248STEEL MINISTRY OUTLINES INCENTIVES TO PROMOTE GREEN STEEL PRODUCTIONINDIA TO IMPOSE 25 PERCENT DUTY ON STEEL IMPORTSThe Union Steel Minister H D Kumaraswamy stated that the government is weighing a plan to implement safeguard duties on imports of steel. "The procedure is underway" regarding the ministry's suggestion to implement India's Steel Ministry has proposed that over one-third of the government's total steel procurement will consist of low-carbon "green steel." Defined as steel produced with emissions lower than 2.2 tonnes of carbon dioxide per tonne of finished steel, green steel will be graded using a star-rated system. A five-star rating will signify an emission intensity below 1.6 tonnes of CO2 equivalent per tonne of finished steel.In a recent presentation, the Steel Ministry outlined plans to reserve up to 37 percent of all future steel procurement for green steel. This initiative aims to incentivize lower carbon emissions in steel production and promote sustainable practices in the industry. Union Steel Minister H.D. Kumaraswamy, speaking at an event marking the announcement, emphasized that the green steel taxonomy would set a benchmark for adopting global best practices and position India as a global leader in green steel production.Addressing concerns about the import of Chinese steel, Kumaraswamy revealed that his ministry has proposed implementing a safeguard duty to protect the domestic steel industry from foreign competition. These measures align with India's broader efforts to promote sustainability and strengthen the domestic steel sector. a 25 percent tax on steel imports, Kumaraswamy informed the media during an event. The steel ministry during a meeting with the commerce department put forward a proposal of a 25 percent safeguard duty for certain steel products imported in the country. The meeting was attended by the steel minister and Piyush Goyal, the Commerce and Industry Minister.The finance ministry can make a conclusive decision on the imposition of the duty from recommendations made by the Ministry of Commerce. The local steel producers have often complained about soaring tendencies of cheaper steel imports from some countries, which affects their operations. Steel Secretary Sandeep Poundrik stated that over 60 percent of steel imports originate from FTA (free trade agreement) nations at zero duty, and any increase in duty will not affect these imports. According to Poundrik, there is indeed a real issue, and the ministry recognizes it.BigMint also found that India imported steel worth 5.51 MnT during April-September 2024-25, which was up from 3.66 MnT during the period from the previous year. Imports from China skyrocketed to 1.85 MnT during that time, up from 1.02 MnT in the April-September timeframe of the financial year 2023-24, it reported. TOP STORIES
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