SKS Ispat & Power Ltd Promoter asserts, A change in India’s Steel Industry can help domestic players rewrite history
A change in India’s steel industry can help domestic steel companies rewrite the sector’s history. Anil Gupta, the SKS Ispat and Power Ltd promoter, couldn’t agree more. With the implementation of GST and new duties on imported steel, the domestic steel industry is likely to undergo a revolution, which is likely to help India’s struggling steel companies make a comeback.
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With additional tax imposed on imported steel, it is believed that almost 80–90 per cent of the requirement has to be fulfilled by the local industries. According to Mr. Anil Gupta, this is the time when both small and big steel industries can make a big impact and try to increase their production without compromising on the quality. This would also pave the way for employment opportunities. With richer expertise and better use of resources, small steel companies can govern the industry’s future. This can benefit both producers and consumers.
Till now, steel products were imported at a subsidized rate, which was hurting the domestic companies. But the imposition of new tax will encourage production of steel within the country. According to Mr. Anil Gupta, the MD of SKS Ispat and Power Ltd, the government’s decision to impose the tax for a period of 5 years will give enough time to domestic companies to meet the demands before rules are changed completely.
India recently overtook Japan as the second largest producer of steel, and this is a great moment for the Indian steel industry. Not a long time ago, the sector was struggling, and the future of small players seemed uncertain. Some of the companies got dissolved over the years. But today, they have the tide in their favor, and with such favorable circumstances, they have a great chance of generating massive revenue and validating the decision of the government in the longer run.
Mr. Anil Gupta said that the imports were distorting the market and the industry was under huge stress, leading to financial crisis. However, with better ideas and good use of technology and human resources, the industry can rule the roost for next the 5 years.
