JSW Steel managing director Sajjan Jindal said infrastructure should get a major boost from the upcoming Budget. Moreover he also feels that steel sector should be included in the infrastructure sector.
Jindal was speaking at the sidelines of a conference held in Mumbai by Assocham on the fiscal situation and task ahead for new government. Jindal also said a slight increase on import duty might happen.
?We have asked the government to increase import duty by 5-10%. However. I don?t think that this would increase the prices of the steel,? commented Jindal.
He also said currently steel prices are quite robust, and globally also it is looking better.
?The steel prices are quite robust, and going forward I feel it will be stable to strong,? commented Jindal. He also said that steel prices are currently improving from the semi-urban area, and also because the auto sector is slowly recovering.
?It?s important for the new government to maintain the demand momentum that is going on. It?s also important for large projects to happen, which will help in the increase of steel demand,? commented Jindal.
Jindal also said that the market-linked royalty on iron ore should be implemented and a 10% charge is also fine.
?The only thing is that the money must be used for the district from where this royalty is being collected,? said Jindal. ?The money (royalty) usually goes into the states? kitty leaving the mining districts the poorest and backward, so it is important that the royalty gets re-invested in these districts,? he added.