Date:02/03/2006 URL: http://www.thehindubusinessline.com/2006/03/02/stories/2006030202240500.htm

Back `Not much to cheer for steel sector'

Our Bureau

Mumbai, March 1

The Budget is disappointing as the increase in the minimum alternate tax and service tax would leave an adverse impact on the industry in general, according to Mr Sajjan Jindal, Vice-Chairman & MD, JSW Steel.

While emphasis has been given to rural growth, agriculture and infrastructure, not much has been provided by way of incentives for the steel sector.

Increase in MAT from seven per cent to 10 per cent and service tax by two percentage points to 12 per cent would leave an adverse impact on the industry. The reduction in customs duty on non-ferrous metal "is not up to expectations". The proposal to offer coal mines to private sector and de-reserve them is a welcome move.

The Budget failed to give directions to draw investments to take forward economy to 10 per cent GDP growth.