Davos: Tata Steel Worried that New Delhi’s decision to impose an export tax on some steel products could force it to review its production targets if the levy remains in place, its CEO told Reuters on Tuesday.
India imposed an export tax of 15% on some steel products over the weekend as steelmakers are trying to meet local demand by increasing market share in Europe, where the Ukraine conflict has hit supplies.
The taxes were part of a series of measures that India has taken to rein in retail inflation, which has hit an eight-year high. But India’s top steelmaking body has warned that the new duty will have an “adverse effect” on mills that aim to boost exports and increase global market share.
TV NarendraniThe CEO of India’s largest steel maker by revenue said Tata Steel understands inflation concerns, but such measures could impact the steel industry in the long run.
Tata Steel plans to increase its capacity in India from about 20 million tonnes per annum (mtpa) to 40 mtpa, but Narendran said it had baked in the assumption that 10-15% of it would be exported.
“If there’s a long-term direction that steel exports will be discouraged, we’ll have to make a call – then you’ll only be building the capacity you need for the domestic market,” Narendran told Reuters in an interview. Feather World Economic Forum At the Swiss alpine resort of Davos.
“We need to have 40 million or 35 million, we will decide… In the medium to long term, India should encourage exports,” he said.
Narendran said that as part of industry delegations, Tata Steel will hold talks with the government to “find a common ground”, which will address New Delhi’s concerns as well as industry concerns.
Tata Steel also has operations in Europe, where it says it is one of the largest steel producers after buying the Anglo-Dutch Corus group for £6.2 billion in 2007, but Narendran said India is the largest in terms of profitability. It was a good performing business.
“Our growth ambitions will be best met in India.”
India imposed an export tax of 15% on some steel products over the weekend as steelmakers are trying to meet local demand by increasing market share in Europe, where the Ukraine conflict has hit supplies.
The taxes were part of a series of measures that India has taken to rein in retail inflation, which has hit an eight-year high. But India’s top steelmaking body has warned that the new duty will have an “adverse effect” on mills that aim to boost exports and increase global market share.
TV NarendraniThe CEO of India’s largest steel maker by revenue said Tata Steel understands inflation concerns, but such measures could impact the steel industry in the long run.
Tata Steel plans to increase its capacity in India from about 20 million tonnes per annum (mtpa) to 40 mtpa, but Narendran said it had baked in the assumption that 10-15% of it would be exported.
“If there’s a long-term direction that steel exports will be discouraged, we’ll have to make a call – then you’ll only be building the capacity you need for the domestic market,” Narendran told Reuters in an interview. Feather World Economic Forum At the Swiss alpine resort of Davos.
“We need to have 40 million or 35 million, we will decide… In the medium to long term, India should encourage exports,” he said.
Narendran said that as part of industry delegations, Tata Steel will hold talks with the government to “find a common ground”, which will address New Delhi’s concerns as well as industry concerns.
Tata Steel also has operations in Europe, where it says it is one of the largest steel producers after buying the Anglo-Dutch Corus group for £6.2 billion in 2007, but Narendran said India is the largest in terms of profitability. It was a good performing business.
“Our growth ambitions will be best met in India.”