Chhattisgarh government reduced the entry tax on iron ore, pig iron and steel scrap purchased from outside the state to 0.5 per cent from 1 percent in the budget for 2013-14.
The state government also reduced the value-added tax on TMT steel bars from 5 to 3 per cent, while the entry tax on iron ore pellet was cut from 1 to 0.5 per cent.
The state budget also reduced the entry tax on furnace oil purchased from outside the state from 10 to five per cent. The sops announced by the government would bring respite to the steel industry that has been passing through its worst ever crisis with half of the units running underproduction, reports suggest.
Chief Minister Raman Singh presented the Rs 44,169-crore Budget, which offered several sops to the stateÂ’s struggling steel industry, besides promising to spend 22 per cent of the total Budget outlay on agriculture.
The state government did its job and now the Union government should also take some initiative that would literally give a new lease of life to the sinking steel industry, said Anil Nachrani, President of the Chhattisgarh Sponge Iron ManufacturersÂ’ Association.
He added that the centre should announce to regulate availability of raw material for the local industry.