In a bid to protect the domestic steel sector that is grappling with problems of low demand, the finance ministry on Monday notified a 20 per cent provisional safeguard duty on certain categories of the metal.
“The government has imposed 20 per cent provisional safeguard duty on certain categories of steel to protect domestic producers. The provisional safeguard duty on steel will continue for 200 days,” said finance minister Arun Jaitley.
The late evening announcement came after the Board of Safeguards upheld an earlier recommendation of the Directorate General of Safeguards (DGS) to impose the duty to protect interests of the domestic industry. “On the representations of the domestic steel industry, the DGS had initiated safeguard investigations into alleged increased imports and consequent injury to domestic industry and issued a preliminary finding on September 9 recommending imposition of provisional safeguard duty at the rate of 20 per cent ad-valorem.