Govt mulls steps to help steel, aluminium sectors

New Delhi: Government is considering "proactive steps" to improve the health of steel and aluminium sectors which are reeling under the impact of decline in global prices, Finance Minister Arun Jaitley said Monday.

"Several suggestion have been offered by the bankers in relation to both steel and aluminium. Some of them have been examined by the Department of Revenue," he said after a meeting with the heads of Public Sector Banks.

"Department of Financial Services would be coordinating further discussions between the banks and Department of Revenue as to what other proactive policy steps are required to be taken in order to improve the health," he said.

The steel sector is a major contributor to the NPA or bad loan woes of the PSBs.

Government has already announced some steps including 20 percent safeguard duty on select steel products to protect domestic producers from recent surge in inward shipments.

The duty was imposed after DG Safeguards recommended imposition of duty on certain steel products to protect interests of the domestic industry.

Safeguard duty is a WTO-compatible temporary measure that is brought in for a certain timeframe to avert any damage to a country's domestic industry from cheap imports.

During the examination of applications of major steel producers like SAIL, Essar Steel and JSW Steel, the DG Safeguards had found "prima-facie increased imports (of certain kinds of steel) have caused or are threatening to cause serious injury to domestic producers..."

Domestic steel producers had complained of a surge in imports of steel products like hot-rolled steel and other variants from China, Korea, Japan and Russia.

The three players, representing 50 percent of the domestic production, had moved DGS for imposition of the levy on imports of hot-rolled flat products of non-alloy and other alloy steel in coils of width of 600 mm or more for four years.