Union Budget 2012-13 : Steel prices to rise by up to Rs. 1,000

In the Budget for 2012-13, finance minister Mr. Pranab Mukherjee had announced hike in excise and service tax rates by 2 per cent to 12 per cent each. The increase in excise rates have become effective from Saturday midnight.

The increase in excise duty rate from 10% to 12% would again push up the steel prices, rising since January, by up to Rs. 1,000 per tonne as costs are likely to increase.

Mr. Sushil Maroo, CFO, Jindal Steel and Power Ltd's (JSPL)  said "The hike in excise duty rates is going to increase cost. A 2% increase in excise duty means costs will go up by Rs. 500 to Rs. 1,000 per tonne. It will be passed to consumers."

Prices for various steel products are currently hovering in the range of Rs. 36,000 to Rs. 40,000 per tonne.

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