Extending safeguard duty on steel imports is an anti-MSME move: EEPC

New Delhi, Apr 1 (KNN) EEPC India, the engineering exporters' body, has described the extension of safeguard duty on steel as an anti-SME move which would further dent the country's exports, already down in the dumps.

The Government on Wednesday extended the safeguard duty on some steel imports till March 2018.

"We feel this is a completely discriminatory judgement and does not take into account the impact of the negative effect the continuation of the safeguard duty will have on the global competitiveness of user industries," Chairman of the EEPC India, T S Bhasin said in a statement.

He said the Steel Ministry itself has taken note of the fall in steel imports by almost one-fourth in April-February period of the fiscal 2016-17.

Bhasin said even there the Quality Control Order and the MIP (Minimum Import Price) regime continues, "there was no case for continuation of Safeguard duty and too till March 2018, when there are already indications that global prices of steel have started to increase.".

The continuation of the safeguard duty not only makes engineering exports uncompetitive, but also there is no specific reason for the levy on HR Coils, which is a basic raw material for engineering products, especially when MIP has already been slapped, said the association.

"While a huge level of protection is being given to the steel units, including those in the large sector, there are reports about further package to them. We have no problem with that but let protection to the one sector not spell death knell for the user industries, which are also battling the global slowdown and domestic demand compression", the EEPC India said. (KNN Bureau)