No Plans to Hike Safeguard Duty on Steel to 20%, Says Steel Secretary

No decision has been taken to hike the safeguard duty on certain steel items to 20%, Steel Secretary Sandeep Pondrik said in an interview with CNBC-TV18, allaying rumors about the increase.

The Directorate General of Trade Remedies (DGTR) had suggested a provisional safeguard duty of 12% for 200 days on certain steel items last month. This proposal is currently under government review, with a final decision expected soon.

“I don’t see any reason for the rumours about 20% safeguard duty,” Pondrik stated. “The process is quasi-judicial, and DGTR has made its recommendations after hearing all stakeholders. The government will act on that basis.”

Addressing concerns about a potential surge in steel imports due to the ongoing US-China trade tensions, Pondrik said the government does not anticipate a major spike. “We have not seen significant increases from China. Most of the import rise is from Japan,” he noted.

He emphasized that safeguard duty is not the only tool to prevent dumping, pointing out that the ministry is also monitoring possible abuse of import licenses.

On domestic steel consumption, Pondrik underscored India’s standout performance. “India alone is experiencing double-digit growth in steel consumption among the large economies, while everyone else is facing stagnation or decline,” he said. He credited this increase to strong investments in infrastructure by the government.

As far as restructuring public sector units is concerned, the secretary made it clear that there is no intention to merge Rashtriya Ispat Nigam Ltd (RINL), NMDC Steel, and Steel Authority of India Ltd (SAIL). He also confirmed that there has been “no progress” on the divestment of NMDC Steel.

The government’s focus, he said, remains on maintaining fair trade practices while supporting domestic industry growth through infrastructure-driven demand.