Imposition of MIP would discourage imports and lead to unjustified increase in the domestic price of steel and steel products
In a relief to the Domestic Electrical Equipment Industry, the Ministry of Steel has decided to scrap the proposal of imposing MIP on import of Steel. The senior officials of IEEMA met the Hon’ble Steel Minister Shri Birender Singh and appealed that MIP would prove to be detrimental for the survival of Downstream Domestic Electrical Equipment Industry, such as, Cables, Towers, Transformers, Rotating Machines, Conductors, Switchgears etc. especially the MSME units, as their raw material prices would increase making them non-competitive.
Imposition of MIP would discourage imports and lead to unjustified increase in the domestic price of steel and steel products, thereby increasing the raw material prices for the users of Steel in manufacturing of finished electrical equipment.
Moreover, the foreign suppliers having access to cheaper supplies of Steel would have a price advantage and dump their finished electrical equipment to India. At the same time, the domestic suppliers would be at a price disadvantage on exports front too.
Commenting on the issue Harish Agarwal, President, IEEMA said, “We welcome the decision of Ministry of Steel of not allowing MIP to be imposed on steel. The Hon’ble Minister has saved the industry, particularly small scale, downstream and export oriented.”
Sunil Misra, Director General, IEEMA said, “Steel is a major part of inputs to the downstream industry as it adds more value addition and helps in generating employment. A large part of the Steel goes, through the downstream industries, into nation building in the form of infrastructure development. Any increase in cost of steel, because of imposition of MIP, would increase the cost of infrastructure and ultimately increase the cost to the consumers.”