Govt mulling proposal to impose temporary tax on Chinese steel imports, says JSW Group Chairman Sajjan Jindal: Report
Bengaluru: The Indian government is reviewing a proposal to impose a temporary tax on Chinese steel imports, JSW Group Chairman Sajjan Jindal said, according to a Reuters report.
Jindal also expressed optimism that the initial public offering (IPO) of the group’s cement business could receive regulatory approval by the end of January 2025, said the Reuters.
“We have been very patient with the steel ministry,” Jindal was quoted as saying by Reuters.
Referring to the industry's ongoing calls for government intervention to address the dumping of Chinese steel in India.
Speaking at an industry event in Bengaluru, he added, “We are trying to convince the government to stop the circumvention of Chinese steel coming via the Free Trade Agreement countries into India.”
Jindal noted that the process of evaluating the request for a temporary tax is underway, with consultations involving the user industry. However, he added, “We haven’t heard back [from the ministries] yet.”
Indian steel producers have been struggling with an influx of Chinese steel, which has pressured domestic prices and affected earnings.
Provisional government data indicates that finished steel imports during April-October reached 5.7 million metric tons, marking a seven-year high.
Jindal cautioned that the continued influx of Chinese steel could keep profit margins thin for Indian mills, leaving limited resources for investments and capacity expansion.
Earlier this month, Tata Steel CEO TV Narendran also warned that sustained steel imports could jeopardize the industry’s investment plans.
On the IPO front, Jindal said he expects the Securities and Exchange Board of India (SEBI) to approve JSW Cement's $477 million IPO by January 2025.
This marks the group’s first statement on the offering since SEBI put it on hold in September.
IBNS
Senior Staff Reporter at Northeast Herald, covering news from Tripura and Northeast India.
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