Relief for the Steel Industry, Boost for Electric Vehicles
NEW DELHI (Economy India): Union Minister of Heavy Industries and Steel, Kumaraswamy, hinted at tightening regulations on steel imports from China during the 5th ISA Steel Conclave. He stated, “Steel dumping from China has become a serious concern. We are committed to resolving this issue.” He also proposed increasing the import duty on steel from China from 7.5% to 10-12%, offering much-needed relief to the domestic steel industry.
The aim of these stricter measures is to protect the domestic market and increase the consumption of locally produced steel. Kumaraswamy assured that discussions would be held with the Prime Minister’s Office (PMO) and the Ministry of Finance to implement all necessary steps to curb steel dumping from China.
FAME-III Scheme to Launch Soon
During the conclave, Kumaraswamy also revealed that the central government is likely to introduce the FAME-III scheme soon to promote electric and hybrid vehicles. The FAME-II scheme had ended in March this year but was extended until September. Now, FAME-III is expected to be launched in the next 1-2 months.
The minister remarked, “We have gained significant experience from FAME-I and FAME-II. We have worked on fixing the issues in these schemes. FAME-III will be launched with improvements, giving a new direction to the production of electric vehicles.”
Market Movement in the Steel Sector, Stock Decline
Following Kumaraswamy’s statements, there was a noticeable movement in the Indian steel market. Shares of major steel companies like JSW Steel and Tata Steel saw slight intraday declines. Investors are concerned that stricter regulations on steel imports from China could alter trade dynamics.
However, the government’s strategy is to strengthen the sector by promoting domestic steel production and consumption. Steel companies are optimistic that these regulatory steps will make the domestic industry more competitive.
Suggestions from the Prime Minister’s Office
Minister Kumaraswamy mentioned that numerous suggestions have been received regarding the FAME-III scheme, including some from the Prime Minister’s Office. He stated, “Our government’s goal is to promote electric and hybrid vehicles to ensure a cleaner environment. This will also help increase the use of clean energy in the country.”
The FAME-III scheme will offer subsidies to vehicle manufacturers, boosting both the production and sale of electric and hybrid vehicles. This initiative will not only benefit the automobile sector but also contribute to maintaining a cleaner environment in India.
Economy India
