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D&B Budget Impact Analysis: Steel sector
Overall Impact: Moderately positive
- Concessional import duty of 5% for melting scrap
has been extended to all units irrespective of the technology adopted for
melting
- Concessional rate of import duty at 25% for
hot rolled coils of stainless steel and of iron and non-alloy steel has been
restricted to other than seconds and defectives only. Seconds and defective
HR coils will therefore attract basic customs duty of 35%
- Relief provided to user sectors is expected
to have a positive impact on the steel sector though the sector itself has
not received any direct benefit from the current budget
- The excise duty exemption granted in respect
of construction activity undertaken by HUDCO and other approved agencies under
the Indira Awas Yojna in Gujarat is likely to spur demand for steel
- The reduction in excise duty on two wheelers
as well as passenger cars is likely to have a substantially positive impact
on the steel sector
- Steel sector is further expected to benefit
from the renewed focus on infrastructure projects and the incentives provided
for housing
- The 2% hike in freight charges announced in
the Railway budget will have a negative impact on the industry
Rediff-Dun & Bradstreet Budget Impact Analysis
Budget 2001
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