Need to look at extending safeguard duty, review levy: JSW Steel's Acharya

The interim safeguard duty of 12 per cent has cushioned the Indian steel industry from cheap imports, but JSW Steel's Joint Managing Director and Chief Executive Officer Jayant Acharya tells Ishita Ayan Dutt in an audio interview that tariff uncertainties are leading to trade diversions from Russia and ASEAN countries, and India needs to wall up to support private capex in steel industry. Edited excerpts:

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JSW Chairman Sajjan Jindal hinted in the company's annual report that a long-term solution is required for the industry. What would that be?

If you see America, they have been having duties for more than a decade—some have been there for close to two decades in a combination of anti-dumping, Section 232, countervailing duty (CVD), etc. Europe put a tariff rate quota—a safeguard which kicks in beyond a particular level, and they've been tightening that quota. These have been there for six or eight years. Most countries have done longer-based duration kind of safeguards which allows the industry to have a visibility on the future. Any capacity takes four years—if we don't have visibility for at least 6-8 years, then how do we make our decisions? The safeguard duty imposed by the government has been timely and helpful. We hope they do what is required to ensure no dumping takes place.

The provisional safeguard is for 200 days. Are you in favour of a longer duration safeguard?

Yes. In Europe, it has been valid for multiple years. In addition, Europe has anti-dumping on various countries. Then they have a CVD on China. There is very high duty on products into the US. Therefore, the ability to export naturally goes down. But I am sure the government will proactively take decisions in this regard.

When is the final decision on safeguard expected?

It's valid for 200 days. So the final duty determination will have to be done and announced within that.