SEPTEMBER 20248PLUMMETING STEEL PRICES DRIVES MINISTRY TO INCREASE IMPORT TARIFFSBPCL & ONGC TO COLLECTIVELY SETUP PETROCHEMICAL REFINERY UNIT IN UPIndia's steel minister announced on Wednesday that he would urge the finance ministry to increase tariffs on steel imports to shield domestic mills from a surge in cheaper imports, particularly from countries like China.India, the world's second-largest producer of crude steel, became a net importer of steel during the fiscal India's Oil and Natural Gas Corporation (ONGC) is planning a multibillion-dollar refinery and petrochemical project in the country's most populous state to capitalize on growing fuel demand. TOP STORIESyear that ended in March, and this trend persisted during the first four months of the new fiscal year, which began in April.Between April and July, China emerged as the largest exporter of steel to India, shipping around 807,000 metric tons, followed by Japan and South Korea.Speaking at an industry conference, Steel Minister H. D. Kumaraswamy revealed that his ministry had requested the finance ministry to take measures to protect the domestic industry. These measures include supporting the industry's call to increase tariffs on steel imports from 7.5 percent to 10 percent-12 percent."Our steel industry is facing significant challenges. They are struggling," Kumaraswamy told reporters.In response to the situation, the Indian government initiated an anti-dumping investigation in August on certain steel products imported from Vietnam.India's largest steel producers, such as JSW Steel and Tata Steel, have indicated that they are in discussions with the government about trade measures to address the issue.Steel prices in India have plummeted to their lowest in over three years due to rising imports and weakened exports, according to commodities consultancy BigMint. The New Delhi-based firm, India's largest oil explorer, is eyeing a 9-million-ton-per-year facility in Uttar Pradesh that could exceed a cost of 700 billion rupees ($8.3 billion), according to four people familiar with the discussions who requested anonymity due to the confidential nature of the talks. ONGC has engaged in discussions with Bharat Petroleum Corporation Ltd. (BPCL) to establish the unit in Prayagraj, where BPCL owns land.India's economy is one of the fastest-growing globally, driving increased demand for crude oil and petrochemicals, even as renewable energy capacity expands. Large infrastructure projects in India often face delays due to slow land acquisition, but access to BPCL's land could offer a significant advantage in speeding up the process.BPCL itself is considering setting up a refinery and petrochemical facility in either Andhra Pradesh or Uttar Pradesh, according to two sources. The company has hired a US-based consultant to conduct a location study, and while Uttar Pradesh is an option, Andhra Pradesh is currently favored due to state-offered incentives.
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