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of 26 October’2013 Steel Re Rolling Mills Association of India visit www.srma.co.in

SRMA STEEL NEWS

SRMA

Steel Re Rolling Mills

Association of India www.sram.co.in

Steel Re-Rolling Mills Association of India www.srma.co.in

Sl. No, Name

1. Shri B.M. Beriwala,

Chairman

2. Shri Jagmel Singh Matharoo,

Vice Chairman

3. Shri Ramesh Kumar Jain,

Treasurer

4. Shri Sanjay Jain

5. Shri Kailasj Goel

6. Shri G P Agarwal

7. Shri S K Sharda

8. Shri Sandip Kumar Agarwal

9. Shri S. S. Sanganeria

10. Shri Sanjay Surekha

11. Shri R P Agarwal

12. Shri S. S. Bagaria

13. Shri Girish Agarwal

14. Shri Goutam Khanna

15. Shri Suresh Bansal

16. Shri Rajiv Jajodia

17. Shri Bhusan Agarwal

18. Shri Mahesh Agarwal

19. Shri Sita Ram Gupta

20. Shri Ashok Bardeja


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Executive Summary

A review of Indian Rural Steel Market

Smes Contribution & Their Energy Efficient Technologies

Special Address given by Mr. H D Khera, (Executive Director SRMA

Delhi office) on UNDP’s “Upscalling Energy Efficient Production in

Small Scale Steel Industry in India”

Environment and Safety

Some Suggested Standpoint 2014

Labour & Legal News

Taxation News

Event & Latest Steel News

CONTENTS


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Steel re-rolling is one of the key important segments of the steel industry. The secondary steel production constitutes

approximately 57% of the total steel production in India. It mainly takes place in steel re-rolling mills (SRRM) that

usually are family-run small and medium enterprises (SMEs) with 75% of units in the small scale. The SRRM

sector is comprised of about 1,200 (working) re-rolling mills.

Direct energy use in the SRRM sector includes heating fuels and electric energy. Indirect energy use is accounted by

the use of energy-intensive raw materials. The SRRM units are characterized by the use of outdated and low-

investment technologies and practices. In general, there is low awareness about energy efficiency and many

companies lack the in-house house engineering and technical manpower to absorb energy-efficiency measures in

their process and to operate high-end technologies.

Steel production is an energy and waste intensive process and there are more than 1200 small scale steel re-rolling

mills in India. In India, the production of 1.0 Ton of crude steel from iron ore generates about 1.2 Ton of solid

waste, 2.5 Ton of carbon dioxide and other pollutants. The mills have grown haphazardly with low-skill labour

force, outdated, low-investment, high production cost technologies and practices largely financed with their own

funds. The direct energy use in this sector includes heating fuels (furnace oil, natural gas and coal), and electrical

energy and is estimated at 25-30% of overall production cost.

The Steel Re-rolling sector in the secondary producers category has certain position. In the Indian market today

due to its extensive restructuring within its resources and within the financial crunch which the sector is facing

from the very start after Independence. The past few years have been tough for the secondary steel re-roller in

India. Hit by sluggish demand coupled with falling prices, high raw material prices, high wages payments

absorption power tariff increase and fuel price increase. There are approximately 2600 re-rolling mills throughout

India, out of which approximately 1800 units are working inclusive of scrap re-roller in India. Out of total

1800,1167 re-rolling mills are on the list of Government. The first Re-rolling Mill in the Country was installed in

the year 1928 at Kanpur mainly for salvaging scrap materials.

By way of the economic liberalization and with the end of the era of subsidies to steel industry in public sector.

The main steel producers were forced to take modernization and renovation steps at their plant. The arising of

scrap and defectives started to shrink at their end. This has made the steel re-rolling sector learn to live with its own

steel making capacities. In the year 1980 the capacity of the sector was assessed at 20 million tonnes, which has

been increased to approximately 24 million tonnes at present The relentless effort has made this sector in producing

various common as well as most typical steel sections in their mills. The BAR steel, the flats, special squares

window section, thinner size HR strips, thinner gaze HR strips, hexagons, wire rods, angles, channels, H-Beams, I-

Beams, tele-channels etc. are the products of this sector.

Through the recent development in reinforcement bars worldwide this sector now produces high quality, high grade

TMT Bars throughout India. Some units have installed the TMT plants under the license of indigenously developed

thermex technology and the other units have developed their own water quenching technology which is fully

capable to produce the same quality of TMT Bars. The re-rollers in the secondary steel producers are shifting the

old technology and getting even ISO: 9000 status. With recent survey, the several re-rollers have already come

under the control of Bureau of Indian Standards for their products.

Recently UNDP is implementing a project titled “Upscaling energy efficient production in small scale steel industry

in India” supported by UNDP, AusAid and Ministry of Steel (Government of India). The objective of this project,

which was launched in July 2013, is to scale-up adoption of energy efficient technologies in small scale steel

industry in India.


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As per the words of Mahatma Gandhi, the Father of Nation, uttered more than 60 years ago, “Indian lives in its

villages. And after more than 60 years of independence it still does. Around 72% of the Indian population lived in

villages in 2020. Despite rapid urbanization, villages will continue to remain a potential market for products at the

rural level. The observed growth in consumption of steel, however, has taken place largely at the urban level

whereas despite rapid increase in agricultural production in India, coupled with developments in the quality of rural

life, the level of rural steel consumption has not risen to any notable height. This study aims at understanding the

steel demand in rural India.

Based on the comprehensive rural survey conducted amoung rural households during July to October 2010, it has

been estimated that the average annual per-capita consumption of finised steel in rural India was 9.78 Kg during the

period 2007-09. Around 60% of this consumption is due to construction activities, mainly at the household level

and, to a lesser extent, at the community level. Household items (such as storage items, consumer durables,

LPG,LPG, utensils etc.) and vehicles form the next two big categories, with about 15% contribution each. Item for

professional use (tools etc.) contribute to about one-tenth of the consumption, Furniture is the lowest contributor

(around 3%) to this consumption.

It has been estimated that per-capita consumption of steel would increase to around 12 Kg in 2020, based on

increased penetration of steel products, This growth would be powered mainly by construction activities, largely at

the household level but also by purchase of items such as items for professional use, furniture and vehicles. On the

other hand, it is expected that demand for household items would decrease over the years. The major reason for the

same is increasing replacement of steel by plastic for some of the major contributing items of that category.

It was found that steel sales pick up during the harvest season or post harvest and also during festival and family

functions. Or the other had, sales go down during rainy season, mainly due to the fact that in many rural areas

traveling to market places becomes difficult in monsoons.

More that 96% of the steel consumption is in the form of carbon steel, with alloy steel forming a small percentage

( largely in household items such as utensils). Around 64% of the usage of carbon steel is in the form of long

products, especially TMT bars used for construction, while the rest is in the form of flat products.

Steel is the most commonly used material currently for most of the household products. Exceptions include certain

furniture items ( where wood is preferred), chairs (where moulded plastic has almost replaced other materials), and

aluminum in case of certain kitchen items. Over the survey period, some shift has been observed. For e.g. steel pipes

have given way to PVC pipes, storage items are increasingly shifting towards plastics. On the other hand, in may

cases materials like aluminum were found to be in the process of being replaced by steel. The major reason for the

shift towards steel is largely its durability and its lower cost to other alternate materials used in a product. Shift

away from steel is mainly due to cheaper alternate materials (such as plastic). At the manufacturing level, some of

the issues faced are high prices of steel, steel supply issues, perceptions regarding rusting etc. (leading to lesser

demand).

Currently a significant proportion of houses constructed in rural India are non-frame (or lad bearing wall structures),

which use less amount of steel when compared to frame structures. Frame structures, on the other hand, offers

various advantages. For e.g. itt is easier to construct and suitable modifications, if required, can be made at a later

stage. This advantage is not available in case of load bearing structure. Awareness level regarding theses structures

and their advantages can be raised at the rural level. Availability of construction raw materials of construction

materials such as TMT bars, GC sheets, etc is an issue in hilly and remote areas. It may lead to the shift towards

other materials other materials and construction practices. Thus, an efficient supply chain for these materials would

help drive the demand for steel.


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Village infrastructure such as schools, clinics, hospitals, irrigation projects, bridges etc. contribute to a small extent

to per-capita consumption. However, these projects specify usage of certain construction technologies and these tend

to percolate down to usage in households too. Also, the unskilled and semi Skilled labour for such projects is from

the villages itself and acquaintance with newer technology being used in these projects can lead to multiplier effect

leading to increased consumption of steel. Government of India and various state governments any increase their

spending in such rural infrastructure schemes and act as facilitator which will have the two-fold effect of

development of rural areas as well as an increase in the consumption of steel at rural level.

We will now first discuss the all India per capita steel consumption. This will be followed by results fr each state in

alphabetical order.

FINDINGS ON TRENDS IN RURAL STEEL CONSUMPTION : ALL INDIA

Average annual per capita finished steel consumption during the period 2007-2009 in the Indian rural market is

estimated to 9.78 kg.

In per capita terms, steel consumption was highest for household related construction at 5.8 kg (59%) followed by

household items at 1.57 kg (16%), vehicles at 1.4 kg (14%), items for professional use at 0.5 Kg (5%), furniture at

0.25 Kg (3%) and construction of common village infrastructure/facilities at 0.26 kg (3%)

Average Annual Per Capita Finished Steel Consumption in Indian Rural Market

Segment Qty (kg)

Construction (Community)

Construction (Household)

Items for Professional Use

Furniture

Vehicles

Household Items (Source : JPC )

0.26

5.80

0.50

0.25

1.40

1.57

Average Annual PEr Capita Finished Steel Consumption in Indian Rural Market

Construction (Household)

59%Items for Professional Use

5%

Furniture

3%

Vehicles

14%

Construction (Community)

3%Household Items

16%


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FINDINGS ON RETAILS PURCHASE PRACTICES AND PREFERENCES : ALL INDIA

In the overall level, taking into consideration all the states surveyed, steel is considered the most commonly

used material for most category items, except for a few specific items, like wood for benches, plastic for

chairs and aluminum for kitchen items like kadaai and pressure cookers.

Shift to steel : There has been some shift observed for kitchen items, from plastic and aluminum to steel

and for agricultural items like PVC pipes and plastic cattle feed trays to steel ones.

Shift from Steel : Relatively less significant, except for items like toothpower and oil cans, cattle ffed trays

and pipes from steel to plastic, maily due to cost factor.

Reasons for shift are mainly durability, lack of awareness, non-availability of materials, difficulty of

repairing, aesthetics among others.

Most retailers feel that steel is the most appropriate material for making of items across all categories.

At an overall level, retailers find it very convenient to procure all items made in steel and do not face any

problems in getting these items serviced.

Around 56% of respondents do not face any hindrance in selling steel items, Major hindrances faced by

other retailers include, durability/rusting related issues, less demand for steel items, pricing issues and steel

quality issues etc.

At an overall level, 78% retailers are of the opinion that the sales of steel items would increase in next 3

years, The graph below depicts the major reasons for the perceived increase in the sales of items made of

steel items over next 3 years. Major reason for same is strength and durability (68%) of steel items. Other

important reasons include attractiveness of steel items, cost, easy handling and increased demand.

Source : JPC

Continue to Next Issue

56%

12%

10%

5%

3%

0%

10%

20%

30%

40%

50%

60%

No Hindrances Durability/Rusting Related

Issues

Pricing issues Less Demand Steel Quality Issues

Perc

enta

ge o

f Res

pond

ents

68%

43%

16%

11%

1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Strength & Durability Steel Items are Attractive Comparatively Cheaper Easy Handling Increased Demand

Perce

ntage

of Re

spon

dents


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The steel industry in India can be classified into two segments of producer: Primary Producers and Secondary

Producers. Primary Producers, who are also identified as Integrated Steel Producers (ISPs), are large bulk producers

having capacity of more than 1MT. This segment consists of the big players like Steel Authority of India Limited

(SAIL), Tata Steel, RINL, JSW, Essar Steel and Ispat Industries etc. On the other hand secondary producers are the

small producers or processors or producers and processors. It is estimated that about 40 per cent of India‘s crude

steel is produced by the small steel plants. Apart from this more than 60 per cent of long steel products are also

produced by the Secondary Steel Producers.

The segment is highly heterogeneous with the units working on standalone basis and primarily comprising of mini

blast furnace units, sponge iron producers, Induction Furnace (IF) and Electric Arc Furnace (EAF) units, Re-rolling

(RR) units, Hot Rolled (HR) units, Cold Rolled (CR) units, Galvanized/Color coated units, Tin Plate units and Wire-

Drawing units. The units which are involved in cold rolling are highest in Maharashtra followed by Gujarat.

Maharashtra also leads in the number of secondary units involved in production of steel in India.

Production (finished steel) from private sector is 80% in 2010-2011. Out of which, the SME sector contributes 46%

With the increase in production. energy consumptions and GHG emissions will also increase correspondingly. As

per available information, global carbon emission at present is around 25.2 billion tonne /year, out of which India’s

contribution is around 1.0 billion tonnes / year (4%). The steel sector contributes 150 million tonnes / year (15%),

out of which SRRM sector contributes 16 million tonnes / year (11%).

The global objective is to reduce GHG emissions by improving end-use energy efficiency levels in SRRM sector.

The immediate objective is to accelerate penetration of environmentally sustainable energy efficient technologies.

Remove key-barriers to energy efficiency measures in the sector. Enabling environment for the industry to adopt

energy efficient, economically viable & environmentally sound technologies. Setting up Model units and implement

technology packages in major geographic clusters of SRRM.

Energy Efficient Technologies for Steel Re-Rolling Mill Sector

High-end Technologies -Energy Saving: 30-40% Low-end Technologies - Energy Saving : 20-25%

Regenerative burner system High Efficiency Recuperator with improved furnace

design

Hot charging of Continuous Cast Billet Change of lump coal to coal producer gas as fuel

Top-and-Bottom firing system in reheating furnace Technology for use of pulverized coal as fuel

Oxy-fuel combustion system in reheating furnace Use of Bio-mass gas as fuel

Walking hearth/Beam furnace Coal Bed Methane

Source : UNDP


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Consumption of energy & other important

performance parameters of re-rolling mills

(Model Units)

Unit Status in

the

beginning

of the

Project

Target / Expected Outcome after

project completion

Oil consumption in the reheating furnace Lit/T 42-45 <30

Coal consumption (Pulverized) Kg/T 80-120 45-65

Gas consumption Nm3/T 48 30

Productivity of furnace Kg/m2/h 120-220 300-350

Scale Loss % 2.5-3.5 <1

Power consumption kWh/T 90-120 60-80

Yield % 89-93 94-95

Utilization of mill % 65-70 80-85

Almost 50 Model units have been selected in all over the country out of which 25 units have been commissioned

with Energy Efficient Technology & Design Suggested by our project team.

With the Post-Commissioning data available, following reduction has been achieving

Furnace Oil : 20-25%

Pulverized Coal : 15-45%

CO2 emission : 4000 – 10,000 t/annum. in each unit.

68,000 Training Manuals were prepared in association with SAIL(MTI) and all these manuals have been

distributed to 1000, SRRM units in the country.

Class Room training program were held in various clusters, in which more than 2500 people were trained.

On-job training programs have been conducted in 22 Model units covering all clusters, almost 20 persons

in each program participated.

Awareness CD has been prepared on 1o Technology Packages & 19 Eco-tech options for Rolling mills.

1200 copies were made and distributed.


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Special Address given by Mr. H D Khera, (Executive Director SRMA Delhi office) of UNDP

meeting at Hotel The Claridges, New Delhi dt. 20th Feb’2012 On “Upscalling Energy Efficient Production in Small Scale Steel Industry in India”

India is the fourth largest energy consumer in the world after United States, China and Russia. India’s largest energy

source is coal, followed by petroleum and other sources.

In 2013, the government announced work on action plan to make India energy independent by 2030 through

increased hydrocarbon production, exploitation of unconventional resources such as CBM & Shale gas etc., foreign

acquisitions by domestic Indian companies, accelerated utilization of renewable sources of energy and reduced

subsidies on motor fuels.

The industrial sector is the largest energy consumer, representing over 40% of India’s total primary energy demand

in 2009. The power sector is the fastest growing area of energy demand, increasing from 23% to 38% of total energy

consumption between 1990 and 2009. Coal is available in India in abundance and can be used for meeting the

shortfall of energy requirement to a considerable extent.

Coal for Steel Sector

At present India produces about 74 MTPA of Steel. India’s target is to produce 300 MTPA of steel by year 2025.

About 85% of the coking coal required for steel production is being imported now. In order to meet the targeted

steel production of 300 MTPA by 2025, estimated coking coal demand will be 170 MTPA. India has about 13

billion tons of coking coal reserve but is lacking in technology for deep shaft coal mining.

Coking coal production potential is plagued by the problems of underground and surface mine fires. The coal seam

fire problem is compounded with land subsidence, land degradation and environmental pollution. Coking coal is the

cheapest source of energy as compared to gas & oil for the purpose.

It has become now essential to (i) arrest the loss of the precious natural resource of coking coal by managing fire and

subsidence with application of suitable technology, (ii) assess the inventory of the available coking coal for long

term resource planning with the ultimate aim for uninterrupted coking coal supply to Indian steel plants, and (iii)

have safe underground technology to prevent surface subsidence.

Natural Gas

India has 1355 BCM of natural gas reserve (as on 2012-13), mostly located offshore, mainly in the eastern KG

basin. Gas consumption has grown at an annual rate of 10% from 2001-2011.

As of 2013, the total natural gas transmission pipeline network in India was more than 15,200 km. Also about

11,000 km pipelines are under execution/proposed in near future. Major companies operating the gas pipeline

system are GAIL, GSPL and RGTIL.

Advancement of Power Sector in India

The Indian power sector has performed commendably in the last decade in order to meet its present & future power

requirement. Various Indian companies such as BHEL, L&T, Thermax, BGR, etc., have tied up with the world

leading manufacturers to manufacture supercritical/ultra-supercritical boilers & turbine in India. R & D efforts have

been made to develop supercritical & ultra-supercritical boiler indigenously.


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On the souce of these Directive Principles as well as international

instruments, Government is committed to regulate all economic activities

for management of safety and health risks at workplaces and to provide

measures so as to ensure safe and healthy working conditions for every

working man and woman in the nation. Government recognizes that safety

and health of workers has a positive impact on productivity and economic

and social development. Prevention is an integral part of economic activities

2 as high safety and health standard at work is as important as good

business performance for new as well as existing industries.

The formulation of policy, priorities and strategies in occupational safety,

health and environment at work places, is undertaken by national authorities

in consultation with social partners for fulfilling such objectives. A critical

role is played by the Government and the social partners, professional

safety and health organizations in ensuring prevention and in also providing treatment, support and rehabilitation

services.

Government of India firmly believes that without safe, clean

environment as well as healthy working conditions, social justice and

economic growth cannot be achieved and that safe and healthy

working environment is recognized as a fundamental human right.

Education, training, consultation and exchange of information and

good practices are essential for prevention and promotion of such

measures.

The changing job patterns and working relationships, the rise in self

employment, greater sub-contracting, outsourcing of work, homework

and the increasing number of employees working away from their

establishment, pose problems to management of occupational safety

and health risks at workplaces. New safety hazards and health risks

will be appearing along with the transfer and adoption of new technologies. In addition, many of the well known

conventional hazards will continue to be present at the workplace till the risks arising from exposure to these

hazards are brought under adequate control. While advancements in technology have minimized or eliminated

some hazards at workplace, new risks can emerge in their place which needs to be addressed.

Particular attention needs to be paid to the hazardous operations and of employees in risk prone conditions such as

migrant employees and various vulnerable groups of employees arising out of greater mobility in the workforce

with more people working for a number of employers, either consecutively or simultaneously.

The increasing use of chemicals, exposure to physical, chemical and biological agents with hazard potential

unknown to people; the indiscriminate use of agro-chemicals including pesticides, agricultural machineries and

equipment; industries with major accident risks; effects of computer controlled technologies and alarming influence

of stress at work in many modern jobs pose serious safety, health and environmental risks.

The fundamental purpose of this National Policy on Safety, Health and Environment at workplace, is not only to

eliminate the incidence of work related injuries, diseases, fatalities, disaster and loss of national assets and ensuring

achievement of a high level of occupational safety, health and environment performance through proactive

approaches but also to enhance the well-being of the employee and society, at large. The necessary changes in this

area will be based on a co-ordinated national effort focused on clear national goals and objectives.


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Every Ministry or Department may work out their detailed policy relevant to their working environment as per the

guidelines on the National Policy.

GOALS:

The Government firmly believes that building and maintaining

national preventive safety and health culture is the need of the

hour. With a view to develop such a culture and to improve the

safety, health and environment at work place, it is essential to meet

the following requirements:-

- Providing a statutory framework on Occupational Safety and

Health in respect of all sectors of industrial activities including the

construction sector, designing suitable control systems of

compliance, enforcement and incentives for better compliance.

- Providing administrative and technical support services.

providing a system of incentives to employers and employees to

achieve higher health and safety standards .

- Providing for a system of non-financial incentives for improvement in safety and health.

- Establishing and developing the research and development capability in emerging areas of risk and providing for

effective control measures.

- Focusing on prevention strategies and monitoring performance through improved data collection system on work

related injuries and diseases.

- Developing and providing required technical manpower and knowledge in the areas of safety, health and

environment at workplaces in different sectors.

- Promoting inclusion of safety, health and environment, improvement at workplaces as an important component in

other relevant national policy documents.

- Including safety and occupational health as an integral part of every operation.

OBJECTIVES:

The policy seeks to bring the national objectives into focus as a step towards improvement in safety, health and

environment at workplace. The objectives are to achieve:-

- Continuous reduction in the incidence of work related injuries, fatalities, diseases, disasters and loss of national

assets.

- Improved coverage of work related injuries, fatalities and diseases and provide for a more comprehensive data

base for facilitating better performance and monitoring.

- Continuous enhancement of community awareness regarding safety, health and environment at workplace related

areas. Continually increasing community expectation of workplace health and safety standards.

- Improving safety, health and environment at workplace by creation of “green jobs” contributing to sustainable

enterprise development.


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SKILLS REQUIREMENT

India’s population is vast at 1.21 billion. It is quick growing at a rate

of 17% and integrating rapidly into the global economy. India is

among the ‘young’ countries in the world, with the proportion of the

work force in the age group of 15-59 years, increasing steadily.

However, presently only 2% of the total workforce in India have

undergone skills training. India has a great opportunity to meet the

future demands of the world, India can become the worldwide sourcing

hub for skilled workforce. The challenges for India get magnified, as it

needs to reach out to the million plus workforce ready population,

while facing an ever increasing migration of labour from agriculture to manufacturing and services. With the

government launching a number of schemes to empower the young workforce, the challenges magnify as there is a

need for effective implementation of the schemes at the grass root level with equal participation from all the

stakeholders concerned. FICCI is playing a pivotal role in this, as a ‘SKILLS Development Aggregator”. Initiatives

THE GOVERNMENT’S RESPONSE

The comprehension of this demographic dividend led to the formulation of the “National Skills Policy” in 2009

which set a target of imparting skills training to 500 million, by 2022. The Prime Minister’s National Council on

Skill Development is an apex institution for policy direction and review. The Council is at the apex of a three-tier

structure and would be concerned with vision setting and laying down core strategies. The Council would be

assisted by the National Skill Development Coordination Board chaired by the Deputy Chairman, Planning

Commission which will coordinate action for skill development both in the public and the private sector.

The National Skill Development Coordination Board was set up under the chairmanship of the Deputy Chairman of

The Planning Commission, on the Public Private Partnership model (PPP). It performs the following functions:

Formulates strategies to implement the decisions of the Prime Minister’s Council on National Skill Development.

- Monitors and evaluates the outcomes of the various other schemes and programs for the Council.

- Develops appropriate and practical solutions and strategies to address regional and social imbalances.

- Ensures quality control in Vocational Training and Education.

- Monitors private participation strategies and helps put in place sectoral action plans.

- It has planned to set up 1500 new ITIs and 5000 skill development centres, across the country, as well as a

National Vocational Education Qualifications Framework (NVEQF) for affiliations and accreditation of the

vocational, educational and training systems.

The secretaries of Human Resource Development (MHRD), Ministry of Labour and Employment, Ministry of

Rural Development, Ministry of Housing and Urban Poverty Alleviation and Ministry of Finance are members of

The National Skill Development Coordination Board.

The National Skill Development Coordination Board has been set up under chairmanship of the Deputy Chairman of The

Planning Commission in the Public Private Partnership mode (PPP). It formulates strategies to implement the decisions of the

Prime Minister’s Council on National Skill Development and also monitors and evaluates the outcomes of the various other

schemes and programs for the council. It also develops appropriate and practical solutions and strategies to address regional and

Social Imbalances, ensures quality control in Vocational Training and Education, monitors private participation strategies and

helps put in place sectoral action plans. It has planned to set up 1500 new ITIs and 5000 skill development centres, across the

country as well as a National Vocational Education Qualifications Framework (NVQF) for affiliations and accreditation in the

vocational, educational and training systems.


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Legal News

India, UAE sign Bilateral Investment Promotion and Protection Agreement

13.12.2013 (UNI) India and the United Arab Emirates signed a Bilateral Investment Promotion and Protection

Agreement (BIPPA) to boost investment flows between the two countries.

The agreement requires each country to encourage and create favourable conditions for investors of the other

country to make investment in its territory and to admit investments in accordance with its laws.

'It is hoped that the agreement would serve as a catalyst in boosting investment flows between the two countries,'

said an official release.

The text of the agreement was finalised on October 30-31, 2013 in Abu Dhabi.

The agreement was signed here by Minister of State for Finance Namo Narain Meena and Mr Obaid Humaid Al

Tayer, Minister of State for Financial Affairs of the UAE. UNI

Private companies, LLP firms cannot use 'National' in names

Companies and limited liability partnership firms floated by private entities should not use the word 'National' in

their names, the government has said. The Corporate Affairs Ministry's latest move comes in the backdrop of

instances of private entities using the word 'National' in their names, including the case of National Spot Exchange,

which is embroiled in a major payment crisis. The ministry also said words such as 'Bank', 'Stock Exchange' and

'Exchange' should be used only after getting no-objection certificates from the sectoral regulators.

"It is being intimated that no company should be allowed to be registered with the word 'National' as part of its title

unless it is a government company and the central/state government(s) has a stake in it," the ministry said. All

Registrars of Companies (RoCs) have been asked to follow the directive strictly while registering companies. A

circular in this regard has been issued to all stakeholders and regional directors, among others.

Entities wanting to have the word 'Bank' in their names must obtain a no-objection certificate from the Reserve Bank

of India (RBI). "By the same analogy, the word 'Stock Exchange' or 'Exchange' should be allowed in name of a

Company only where no-objection certificate' from Sebi in this regard is produced by the promoters," the circular

said. RoCs come under the ministry, which implements the Companies Act.

In the draft rules for the new Companies Act, the government had proposed that phonetic or spelling variations of

existing names or similar-sounding words would not be allowed for new companies. The new rules bar the use of

abbreviations and country and state names, except for some government units. Terms such as 'British India' and

names of 'enemy' countries will not be allowed.

The government had suggested an indicative list of dos and don'ts to be followed while incorporating a company in

the country to ensure that their names reflect the nature of their businesses to the extent possible. Besides, the

ministry had drawn up a list of words and combinations such as Board, Commission, Authority and Rashtrapati that


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can't be used without prior approval of the central government. Other words on the list include Undertaking,

National, Union, Central, Federal, Republic, President, Small Scale Industries, Khadi and Village Industries

Corporation and Development Authority.

Source : http://businesstoday.intoday.in/story/private-companies-llp-firms-cannot-use-national-in-names/1/203472.html

Indian CEOs most confident about economy: PwC survey

CEOs from across the world have become more optimistic about revenue gains of their companies and overall

economic growth, with Indian business heads emerging as the most confident about economy and among top-5

globally for internal topline figures, a survey said on Tuesday.

Besides, CEOs from across the world including in India plan to aggressively expand their workforce this year, even

as their worries about over-regulation, fiscal deficits and tax policy have reached highest ever levels, the PwC

survey said.

Releasing its annual CEO survey on the opening night of World Economic Forum in Davos, global consultancy

giant PwC stated that compared to last year twice as many CEOs around the world believe the global economy will

improve in the next 12 months.

Moreover 39 per cent of chief executives are 'very confident' about their company?s revenue growth in 2014.

India was ranked fourth in the list of countries/regional CEOs who are confident of revenue growth in the next 12

months time, which was topped by Russia, followed by Mexico and Korea in the second and third place.

Commenting on the survey results, released at the opening of the World Economic Forum's annual meeting in

Davos, Switzerland, Dennis M Nally, Chairman of PricewaterhouseCoopers International, said "CEOs have begun

to regain confidence."

Nally added that CEOs have successfully guided their companies through recession and now more CEOs feel

positive about their ability to increase their revenues and prospects for the global economy.

However, CEOs also acknowledge that generating sustained growth in the post-crisis economy remains a challenge,

especially as they deal with changing conditions like slowing growth in the emerging markets, he added.

"For the future, CEOs tell us that they expect three major global trends ? rapid technological advances, demographic

changes and shifts in economic power ? will have a major impact on the future of their businesses. Finding ways of

turning these global trends to their advantage will be the key to future success," he said.

For PwC's 17th Annual Global CEO Survey, 1,344 interviews were conducted in 68 nations during the last quarter

of 2013.

By region, 445 interviews were conducted in Asia Pacific, 442 in Europe, 212 in North America, 165 in Latin

America, 45 in Africa and 35 in the Middle East. The India report based on these findings will be released late

February at the three-city CEO Summit.

http://businesstoday.intoday.in/story/business-today-business-confidence-index-january-2014/1/202167.html

http://businesstoday.intoday.in/story/wef-meet-starts-on-tuesday-india-to-have-strong-presence/1/202480.html


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TAXATION NEWS

Vote on account 2014: Excise cut on automobiles, capital goods will boost steel demand

KOLKATA: Steel firms, grappling with slow demand and low iron ore supplies could look for some cheer in the

FM's proposal to slash excise duty on automobiles. The move is expected to boost sagging automobile demand, as

car majors have already lined up a slew of new launches.

Large domestic steel players like Tata Steel, Steel Authority of IndiaBSE -1.36 % (SAIL), Essar Steel, Bhushan and

Mukand etc, who have put up capacites for high value automotive steels, may have some reason to smile. The

market too responded positively with shares of Tata Steel, Bhushan Steel, Essar SteelBSE 0.41 % and JSW

SteelBSE -0.58 % gaining at the BSE on Monday.

Steel players said it would provide a boost to manufacturing sector outlook.

"The proposal to reduce excise duty on automobiles in the current economic environment is a welcome step.

However, it would have been more meaningful and impactful if the excise duty on steel would have been reduced.

This would have had a positive and deeper influence on a wider section of Indian industry," Essar Steel India

executive vice chairman Firdose Vandrevala said. For Essar, auto constitutes about 15% of total sales volume.

SAILBSE -1.36 % chairman C S Verma said the thrust on growth is good for steel industry in general. "The interim

Budget is positive for us owing to its thrust on growth which is good for the steel industry. The lowering of duties

on capital goods & automobiles will strengthen demand for steel," Mr Verma said.

Bhushan Steel, one of the largest producers of auto grade steel said it expects the FM's move to trigger a spurt auto

demand. "Higher demand for auto will definitely help increase demand for steel," Neeraj Singhal, MD of Bhushan

SteelBSE -0.12 % said.

Analysts said the move will help bring much needed optimism in the sector which is facing low demand. Jayanta

Roy, senior VP & co-head corporate sector ratings at ICRA LtdBSE -0.42 % said: "The proposed excise cut will act

as an incentive for intending purchasers. While we need to see if the incentives are strong enough to overcome other

challenges facing these sectors, the budget proposals nevertheless will have a positive development incrementally."

The impact of the move will be felt across industries. "For auto, capital goods like turbines, heavy equipment,

machinery and white goods etc the main ingredient is steel, An excise cut will lead to a pick up in demand and thus

have a ripple effect across a number of sectors," Sachin Menon, national head (indirect tax), KPMG said.

Domestic majors have already entered into tie ups with global auto steel majors in anticipation of a higher auto

demand in future. Tata SteelBSE -2.29 % has a tie up with Nippon Steel and sells nearly one million tonne to the

automotive industry, which is 20-25 % of its total flat product sales.

While Bhushan Steel and Essar have agreements with Sumitomo and Kobe Steel of Japan, JSW Steel has set up a

plant for automotive steels in partnership with JFE Corp. SAIL is also coming up with a state-of-art cold rolling mill

at Bokaro steel plant to cater to the auto sector.


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Merely transfer through bank account does not prove that the money is explained

Deletion of addition under section 68 for unexplained credits without examining creditworthiness of the

persons or genuineness of the transactions for the mere fact that credit were made through Banking channels

not justified.

Transaction through bank is not sufficient as per the ratio laid down in the case of CIT Vs. Precision Finance Pvt. Ltd, 208 ITR

465 Cal. Merely because the money is transferred through the bank account does not prove that the money is explained. The

appellate authorities have not examined the creditworthiness of the persons or genuineness of the transactions. In the instant case,

the remand report was not considered. Hence, the facts are not clear in the case. When it is so, then in the interest of justice we

deem it fit to restore the matter back to the Tribunal to examine the matter afresh.

High Court of Allahabad

Commissioner Of Income Tax

V/s..

Smt. Prem Lata Sethi

INCOME TAX APPEAL No. – 36 of 2009

Assessment Year 2004-05

Order Date:- 25th Oct., 2013

Hon’ble Rajiv Sharma,J. Hon’ble Dr. Satish Chandra,J.

(Delivered by Hon. Dr. Satish Chandra, J)

The present appeal has been filed by the appellant-Department under Section 260A of the Income-tax Act, 1961, against the

judgment and order dated 28.11.2008, passed by the Income Tax Appellate Tribunal, Lucknow in I.T.A.No.561/luc/2008, for the

assessment year 2004-05.

On 17.11.2009, a Coordinate Bench of this Court has admitted the appeal on the following substantial question of law:-

“Whether, on the facts and circumstances of the case, the Income Tax Tribunal erred in deleting the addition of Rs. 72,10,100/-

on account of unexplained cash credit without giving any clear finding regarding the creditworthiness of the creditors and

genuineness of the transaction?”

The brief facts of the case are that the assessee is an individual who is engaged in trading of consumable white goods in the name

and style of M/s. Ashirwad Distributors. For the assessment year under consideration, the assessee has filed the return by

showing an income of Rs.1,49,276/-. On 22.12.2006, the A.O. passed an order under Section 143(3) of the Act, on total income

of Rs.80,11,200/-. The A.O. observed in his order that the borrowed funds and unsecured loans were introduced in the assessee’s

account from a common pool saving bank account No.45729 in Punjab National Bank. The details of the accounts are as under:-

1. Rs.25,05,100/-

2. Rs.4,22,500/-

3. Rs.17,20,000/-

4. Rs.20,00,000/-


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5. Rs.8,35,500/-

Total:- Rs.74,82,600/-

The funds were transferred from the saving bank account No.45729, Punjab National Bank which was known as common pool

account. So, the A.O. made the addition accordingly. However, the first appellate authority has admitted the fresh evidence and

deleted the addition by observing that all the credits were from closed family members. The department preferred a second appeal

before the ITAT against all the above additions except for the deleted amount of Rs.2,72,500/-. In other words, the department

has filed an appeal before the Tribunal for deleting the addition of Rs.72,10,100/-. The Tribunal confirmed the order of the first

appellate authority for deleting the additions. Still not being satisfied, the department has filed the instant appeal.

With this backdrop, Sri D.D.Chopra, learned counsel for the department has justified the order passed by the A.O. At the strength

of the written submissions, he submits that on various dates unsecured loans and credits were taken from the common pool,

where the assessee herself, Sri Rohit Rai Sethi, Sri Mohit Sethi, and Ms. Ruchi Sethi were the accounts holders. The assessee was

asked to furnish the source of addition and capital account and details of unsecured loan. No satisfactory reason/reply was

furnished. So, the A.O. has rightly made the addition. He also submits that in the common pool, no source was furnished. Lastly,

he made a request to set aside the order passed by the appellate authorities.

None appeared on behalf of the assessee though the name of Sri Mudit Agarwal is printed in the cause list. Service is sufficient.

From the record, it appears that on 29.03.2004, an amount of Rs.25,05,100/- was transferred through joint saving bank

account No.45729 of assessee with others. The source of this entry was shown that on 29.03.2004, a sum of Rs.25 lacs was

transferred from the account No.980 of M/s. Shubham India Market, and Propriety Firm of Sri Mohit Sethi, son of the assessee.

But the assessee did not furnish the details of the account No.980 of M/s Shubham India Marketing, during the course of

assessment proceedings inspite of being repeatedly asked. A graphic description of transfer was also shown in the remand report.

The A.O. has verified the credit entries amounting to Rs.15 lacs, Rs.10 lacs, Rs.25 lacs and Rs.25 lacs all dated 27.03.2004

respectively, appearing in the savings bank Account No.987 of the assessee. An earlier examination of these entries on

24.08.2007 with the books of account of the assessee shows that these were said to have beenpayments received from the various

parties against sales viz. M/s. Goldee Entertainment, M/s. Sangeet Radio, M/s. Shobha Electronic, and M/s Electronic Plaza. The

assessee was required to produce all the invoices regarding the transfer entries appearing in the bank account No.987 vide

ordersheet dated 12.09.2007.

Lastly, the A.O. observed that as per the list submitted by the assessee, no debit or credit balance was outstanding against the

M/s. Subham India Marketing. This goes to prove that the assessee firm has not made any sales to the firm M/s. Subham India

Marketing and the assessee has filed invoices just to form the basis of transfer entries from the bank account of Subham India

Marketing to the bank account of the assessee firm. So, a deep investigation is required. But the CIT(A) has deleted the addition

by observing that no cash deposits are reflected in the bank account in the month of March. The Tribunal uphold the order passed

by the CIT(A) without examining the remand report.

Needless to mention that the transaction through bank is not sufficient as per the ratio laid down in the case of CIT Vs.

Precision Finance Pvt. Ltd, 208 ITR 465 Cal. Merely because the money is transferred through the bank account does not prove

that the money is explained. The appellate authorities have not examined the creditworthiness of the persons or genuineness of

the transactions. In the instant case, the remand report was not considered. Hence, the facts are not clear in the case.

When it is so, then in the interest of justice we deem it fit to restore the matter back to the Tribunal to examine the matter afresh

in the light of above discussions as per law at the earliest preferably within a period of four months.


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When we have restored the matter back to the Tribunal, no answer to the substantial question of law is required.

In the result, appeal filed by the department is allowed for statistical purposes.

One Day National Conference on ワst Optimization in Secondary Steel Sector on Monday, the 10th March

2014 at Hotel Le-Meridien, New Delhi.

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World Steel 2014 Conference

Mon, 17 Mar 2014

World Steel Conference is scheduled to take place on the 17-19 March 2014 in Prague, Czech Republic.

International experts will analyse and discuss the latest global market trends and key challenges affecting the

industry. Why attend? Learn about the latest developments in the European steel industry. Discuss key issues

affecting mills. Compare steelmaking costs

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15th Asian Ferro-alloys Conference

01 April 2014 - 03 April 2014

Conrad Hotel, Hong Kong, Hong Kong

Metal Bulletin Events' 15th Asian Ferro-alloys Conference will still take place in Hong Kong. With over 600

delegates expected, the flagship Asian event is not only the most important forum to discuss the challenges and

opportunities facing the regional and global markets, but an excellent platform to reconnect with trading partners,

forge new business relationships and be updated on the latest industry information and trends.

STEEL NEWS

Steel ministry sees no closure of iron ore mines in Odisha

Business Standard reported that the Union steel ministry does not foresee any possibility of closure of operating

mines in Odisha in the wake of tabling of the Shah Commission’s report on illegal mining contrary to the

apprehensions of the mining fraternity.

Mr G Mohan Kumar Union Steel Secretary said when asked if some operational mines in Odisha were headed for

closure in the wake of the Shah Commission's report that “I don't think so. He also ruled out the possibility of steel

plants in the state facing a crisis in iron ore supplies.”

Mr Kumar said that “That is only a part of the issue. The steel plants faced a crisis in Karnataka but that situation is

unlikely to happen in Odisha. Existing and prospective steel projects were grappling with problems of raw material

supplies and various regulatory clearances. The major issue is to ensure stable iron ore linkages for the steel units.”

The Shah Commission, quoting an order of the Supreme Court, held that mining operations without environment

clearance is illegal and needed to be stopped immediately. In its report, the commission stated 96 mining leases had

delayed ECs while 94 were operating without EC.

Referring to illegal mining, the commission's report said that out of 192 leases of iron ore and manganese ore, 130

were engaged in ore production without unlawful authority. The probe panel has also detected large scale violation

of environment and forest laws.

Source – Business Standard

(www.steelguru.com)

Supreme Court permits mining operations of Sandur Manganese

Business Standard reported that the Supreme Court has permitted Sandur Manganese & Iron Ores to continue its

mining operations.

Sandur Manganese & Iron Ores said that considering the company's plea, the Hon'ble Supreme Court was pleased to

stay the directions contained in the Ministry of Environment & Forests communication dated January 29th 2014

resulting in permitting the company to continue mining operations. Thereafter, having coordinated with all the

concerned government departments, the company is resuming its mining operations from February 21st 2014.

It may be recalled that Sandur Manganese & Iron Ores had informed on February 1st 2014 about suspension of

mining operations of the company consequent to Forest Conservation Division of Ministry of Environment &

http://www.metalbulletin.com/EventDetails/0/6854/15th-Asian-Ferro-alloys-Conference.html

http://www.steelguru.com/


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Forests, Government of India by clarification dated January 29th 2014 opined that the Forest Clearance granted by it

to the company should be considered as co terminus with the period of Lease under Mines and Minerals Act, 1957

since it does not recognize the provisions under Mineral Concession Rules, 1960.

Source - Business Standard

(www.steelguru.com)

Chhattisgarh State Budget cheers ailing Steel Industry

Chhattisgarh state budget which was announced on 8 Feb, 2014 has given steel industry many reasons to cheers.

Government had offered sops for small & medium enterprises for reviving from the crises which it had been facing

due to economic slowdown.

The continuous economic recession has adversely affected the growth prospects of local industries, particularly

small & medium scale Iron and Steel Industries in the state. Keeping this aspect, Hon’ble Raman Singh has

proposed a series of tax reliefs for the local & cottage industries to revive them from recession in the budget

estimates, which will be applicable w.e.f 1 April, 2014.

State accounts for highest steel production by secondary sector, which accounts for 190 rolling mills, 100 Sponge

iron units and over 150 mini steel plants.

Highlight of budget pertain to steel sector

1. CST reduced from 2% to 1% on goods manufactured by small & medium steel industries.

2. Entry tax exempted on Iron ore Pellet and Billet on interstate purchase by small & medium steel industries.

3. VAT reduced from 5% to 2% on Pig Iron, Scrap, Iron ore Pellet and Ferro Alloys; when purchased as raw

material by Iron & steel industry against declaration.

4. Entry Tax reduced 6% to 1% on Coking Coal imported by Bhilai Steel Plant.

5. Entry Tax shall be 1% on market value as notified on raw material excavated from captive mines.

6. Entry Tax reduced from 3% to 1% in Bauxite.

Government ask Indian steelmakers to invest 1pct of turnover in R&D

Business Standard reported that Indian government will soon ask major steelmakers to invest at least 1% of their

total turnover in R&D activities in the next 2 years so as to help India treble steel output to 300 million tonne. It also

wants steel companies to double the spend after that till 2020.

Mr Mr Beni Prasad Verma steel minister of India said that "We will issue directions to major steel players to invest

more in Research & Development. They will be asked to increase the investment in R&D to at least 1% of the total

turnover by 2015 to 16 and 2% by 2020. The government also plans to provide incentives to steelmakers for

increasing investment in R&D which is abysmally low at present ranging from 0.15% to 0.25%.”

He said that "The roadmap also aims at tackling limiting factors like technological obsolescence and lack of timely

modernisation, lack of inferior quality raw material and lack of automation. The move is based on Steel Ministry's



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roadmap to boost sector's growth.”

The ministry has constituted a task force to prepare a blueprint for promoting R&D in the sector in a bid to help

India treble its production capacity to 300 million tonne from the present about 96 million tonne. The policy would

also focus on development of alternative iron making technologies and adoption of technologies like Finex, Fastmet

and ITmK3.


(www.steelguru.com)

Indian should roll back export duty on pellets - Parliament Panel

Business Standard reported that the 5% export duty on pellets, which was imposed recently, should be rolled back

till the time domestic steel makers become technologically sound to consume the entire production.

The panel, headed by Mr Kalyan Banerjee also recommended in its report, tabled in Parliament that the Steel

Ministry should take up the matter immediately with its Finance counterpart. Till technological up gradation is made

in domestic steel plants so that they could fully consume the domestically produced pellets, government should

continue with the earlier policy of zero percent export duty on pellets.

This is to ensure that the huge investments made in the steel industry do not become non productive assets and

thousands of people do not loose their livelihood. With effect from January 27th, government imposed a 5% export

duty on iron ore pellets.

According to the committee, the increase defied logic. The committee, therefore, recommend that Ministry of Steel

should immediately take up the matter with Ministry of Finance at the appropriate level and apprise them of the

action taken on the matter.

It also expressed concerns over uncertain situation regarding availability of raw materials and their imprudent

utilisation for domestic iron and steel industries. Therefore, taking into account the iron ore requirement for the

domestic iron and steel industry. The Committee recommended that iron ore resources need to be preserved for

domestic utilisation as a long term measure.

It suggested that Steel Ministry to draft the new Steel Policy keeping in view long term goals of future sustainability

of iron ore in the country. The Ministry, in its Action Taken Report, has said that the proposal would be duly taken

care of.


(www.steelguru.com)

India: Excise Duty Cut on Cars may boost Domestic Flat Steel Consumption

The interim Budget has bought in some relief for the automobile Industry as the Finance Minister Mr. P

Chidambaram reduced excise duty for small cars by 4%. The prevailing duty of 12% was reduced to 8%.

The automobile Industry is one of the major consumers of Flat Steel products in India. This sector consumes around

2 MnT of Flat Steel products, whereas the demand is about 7-8 MnT. Many automobile companies depend on




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imported steel products due to specific requirements; however cost competition has forced manufacturers to look for

domestic substitutes. Experts believe that in coming years, domestic Flat Steel industry is likely to meet the entire

demand for automobile companies owing to capacity expansion seen by many players.

As per industry body SIAM, Car sales have declined annually by 10% in 2013 for the first time in the last 11 years.

The excise duty cut comes as a sigh of relief for the auto sector.

Production of Cold Rolled steel used in automobile industry is as shown below:

CRC Production

May Jun Jul Aug Sep Oct Nov Dec

2012 1,071 995 1,022 1,029 1,012 995 1,006 252

2013 1,051 1,026 1,077 1,016 1,007 1,039 1,021 383

Qty in ’000 MT

Bhushan, one of the prime manufacturers of Auto grade steel is quite bullish on this sector. It has planned to

increase its capacity to 4.5 MnT in this year, in order to meet the growing demand from the automobile industry.

Steel Authority of India Limited (SAIL) is also planning to set up a 1.2 MnT pa cold rolling mill at its Rourkela

Steel Plant (RSP) through a joint venture. Production from this unit will cater to the needs of the auto sector. SAIL

supplies around 0.5 MnT of steel to the auto sector, whereas its competitor TATA supplies around 1 MnT.

Sales of domestic cars have witnessed a decline of 7.6% in January. The duty cut will make cars cheaper by almost

INR 25,000- 30,000 and thus boost sales. This will bring cheers for the beleaguered auto industry. But many experts

view that higher interest rate and rising fuel cost may continue to affect the demand for automobiles.

India: Re-bar Manufacturers under Pressure over Dull Demand & Costly Raw Material

Re-bar offers are more or less same from last two weeks. Re-bar manufacturers

are unwilling to make any major changes in Re-bar prices.

Why Re-bar prices are stable?

As per SteelMint survey, the reasons are:

1) Reduced Demand from Nearby States

Chhattisgarh: A Re-bar manufacturer based at Raipur said, “Re-bar supply from Raipur to nearby states have

declined. Raipur supplies Re-bar to most of the Indian cities, in which Madhya Pradesh (MP) is a major market for

it.

He added further, Re-bar supply to MP has diminished owing to strict tax checking (without bill supply) in MP

border. Along with this MP Re-bar buyers are not getting enough profit margins on buying from Raipur.”

2) Expensive Raw Material


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Maharashtra: Semi Finish offers are stable across India. Mumbai & Jalna based Re-bar manufacturers said,

“Demand is dull, but owing to high price of Ingot/Billet we are not able to cut Re-bar prices as conversion margin

has already got down.”

3) Election scheduled in May’14 held the new government projects. Primary producers are shifting to open

market as there are less project sales. RINL sold Re-bar from its Ahmedabad, Ludhiyana & Hyderabad stockyards

in its recent open auction.

4) Primary Re-bar Manufacturers like JSPL, SAIL & Monnet are increasing their productions.

Ingot & Re-bar Prices as on 18 Feb, 2014

City Ingot Change Re-bar 12 mm Change

Muzaffarnagar 33,200 + 100 35,200 - 300

Durgapur 30,000 - 50 33,400 - 100

Raipur 29,900 0 33,900 - 150

Mumbai 32,250 + 50 35,500 0

Ahmedabad 33,250 + 450 36,850 + 150

Hyderabad 32,000 0 35,900 - 200

Chennai 32,500 0 36,900 0

Note: Basic Price in INR/MT

India: No change in Excise Duty for Steel Sectors – Budget 2014

Presenting the interim Budget 2014 in Parliament, the Finance Minister, P Chidambaram on Monday proposed no

changes in excise duty on steel products; however slashed the excise duty from 12 % to 10 % on capital goods &

consumer durables.

The Finance Minister, P Chidambaram said that GDP growth has improved now and will be 4.9% for the current

financial year i.e. FY14. Economic growth had slowed to a decade’s low of 4.5 % in Fy13.

He also said that India’s exports are likely to touch USD 326 billion in FY14. Exports were about USD 304.5 billion

in FY13.

The full Budget for FY15 will be presented by the new government in June-July, 2014.

Key Highlights Taxation

- No changes proposed in the tax laws

– Excise duty on consumer durables and capital goods cut from 12% to 10%

– Excise duty reduced for small cars from 12% to 8%

– Excise duty reduced for SUVs from 30% to 24%

– Excise duty on medium cars reduced from 24% to 20%

– Excise duties on bikes/2 wheelers down to 8%

-


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India: Re-bar Offers grew up W-o-W; minor fluctuations Anticipated

Re-bar offers pushed up owing to increased gauge difference. Market participants are anticipating minor fluctuation

of INR 200-300/MT in Re-bar offers.

Highlights of the previous week

North India: Re-bar offers increased by INR 500-700/MT W-o-W.

East India: Finish market remains unchanged in a week’s time except Patna & Giridih, which are increased by INR

700-850/MT W-o-W.

Central India: Re-bar prices increased by INR 650/MT in Madhya Pradesh (Indore), while it stimulated by only

INR 100-200/MT in Chhattisgarh (Raipur & Raigarh).

West India: In Mumbai & Goa, Re-bar offers are kept unchanged, whereas Jalna Re-bar offers moved up by INR

300/MT W-o-W owing to expensive raw materials.

“High price of raw materials pushed up Finish long market last week, now market looks to be stable as buying is

average,” said a trader based in Jalna.

South India: On one side, Re-bar prices hiked by INR 900/MT in Hyderabad, while it reduced by INR 350/MT in

Chennai.

Dull demand in the peak season discouraged Indian Re-bar manufacturers, whereas increasing gauge differences are

escalating Re-bar offers.

Re-bar Gauge Difference

New Old

Hyderabad w.e.f – 08 Feb, 2014 Hyderabad

Basic = 20 mm Basic = 20 mm

8, 28, 32 mm = Basic + 2,500 8, 28, 32 mm = Basic + 2,000

10, 12, 16, 25 mm = Basic + 1,500 10, 12,16, 25 mm = Basic + 1,000

Muzaffarnagar w.e.f – 08 Feb,2014 Muzaffarnagar

Basic = Open Price Basic = Open Price

12mm = Basic + 4,500 12mm = Basic + 4,000

8mm = Basic + 7,000 8mm = Basic + 7,000

10mm = Basic + 5,500 10mm = Basic + 5,500

16, 20mm = Basic + 4,500 16, 20mm = Basic + 4,500

25mm = Basic + 5,000 25mm = Basic + 5,000

Note: Basic Price in INR/MT

Conversion spread from Ingot to TMT increased from Last Week

Region City MS Ingot TMT (12 mm) Conversion/Spread

Conversion W-o-W

Central Raipur 30,000 34,200 4,200 +500

East Durgapur 30,450 33,700 3,250 + 200


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North

Mandi

Gobindgarh 33,950 38,000 4,050 + 250

West Mumbai 32,300 35,800 3,500 0

West Ahmedabad 32,450 36,600 4,150 + 150

South Hyderabad 32,300 36,400 4,100 + 400

South Chennai 32,500 36,800 4,300 -350

Note: Basic Price in INR/MT; ED, VAT & Loading Extra

Indian steel consumption might expand by 2-3pct in FY14 - INSDAG

Business Standard reported that steel consumption in the country might clock a growth of 2% to 3% in 2013 -14.

Mr Sushim Banerjee DG of Institute for Steel Development & Growth said that "The steel industry is facing

sluggish consumption growth. We expect some improvement in Q4 period and the sector may see a growth of 2% to

3% in 2013 to 2014. The steel demand in the 10 month period increased by only 0.5% to 0.6%.”

Mr Banerjee said that “Traditionally in the Q4 period demand and price remained buoyant but this year long

products were witnessing price pressure after slump in steel scrap price in the international market. Crude steel

production in April 2013 to January 2014 period was 4.6% and for the full fiscal FY'14 it was projected to remain at

around 5%.”

He said that he was not sure and it might come sooner as elections were knocking on the doors. Despite sluggish

demand and production outlook in FY'14, the scenario was likely to improve in 2014 to 2015. The industry expects

some 10 million tonne capacity to be added from greenfield capacity and greater capacity utilisation from the

industry.


(www.steelguru.com)


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