Minister of Steel & Mines Shri Narendra Singh Tomar has termed the central budget presented in parliament yesterday as a budget for villages, farmers, poor, entrepreneurs and youth. He said that envisaged expenditure on infrastructure and road construction will give a boost to economy and generate demand for steel in the country.
Shri Tomar has appreciated various initiatives and decisions in the budget aimed at bringing improvements in agriculture sector, irrigation systems, health care, education, skill development and poverty alleviation.
Shri Tomar welcomed the decision to increase custom duty on zinc alloy, which will control the recent surge in imports. Removal of export duty on iron ore with Fe content less than 58 % will encourage exports of iron ore which is not being utilized in India and increase in custom duty by 2.5 % on aluminium will provide relief to domestic industry, he added.
Shri Tomar expressed confidence that steel industry will benefit from increase in steel demand as a result of various decisions taken in the budget including :
• A new policy to expand LPG connections to the poor and the needy particularly in the rural areas will help to increase demand for LPG grade HR Coils. The steel industry will directly benefit from this.
• With a target of 100% village electrification by 1st May 2018, there will be a possible increase in demand of steel products such as poles, structural steel, wires, electrical steel, etc.
• A policy to provide 100% FDI through FIPB route in food products produced and marketed in India will increase the need for storage for food products. This will increase the demand for containers and silos for storage, indirectly boosting steel demand.
• The government's investment plan of Rs. 85,000 crore in irrigation will expected to increased demand for pipes and tubes.
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