MINISTER OF THE STATE IN THE MINISTRY OF STEEL (SHRI VIRBHADRA SINGH)
(a)&(b): According to the New Industrial Policy announced in July, 1991, steel industry has been
de-licensed and removed from the list of industries reserved for the public sector subject to
certain locational restrictions. No industrial licence is, therefore, required for setting up
steel plants under the Industrial (Development & Regulation) Act, 1951 and the entrepreneurs
are free to set up such plants anywhere in the country except in the restricted locations based
on their commercial judgment.
However, as per the information available in the Ministry of Steel, 222 Memorandum
of Understanding (MoUs) have been signed by various State Governments for setting
up various steel units in their respective states for total capacity of 275.698
million tones.
(c)&(d): Government has no direct role in amendment of infrastructural facilities in the steel
industries, which are carried out by the respective companies under modernization and capacity
expansion programmes.
(e)&(f): Government has taken the following measures in helping the steel industry, including
small and medium steel producers, in overcoming the situation arising out of global financial
crisis. These are:
(i) Export Duty on steel items has been withdrawn w.e.f. 31.10.2008.
(ii) DEPB on steel items restored w.e.f. 14.11.2008.
(iii) Import Duty on iron and non-alloy steel items re-imposed at 5%, w.e.f. 18.11.2008.
(iv) Excise Duty (CENVAT) on steel items reduced from 14% to 10% w.e.f. 07.12.2008.
(v) Countervailing duty (CVD) on TMT bars and structurals reintroduced w.e.f. 02.01.2009.
(vi) Excise Duty (CENVAT) on steel items further reduced from 10% to 8% on 24.02.2009.
