Its all like an oasis in the desert.We see several head lines in the news papers about the Steel price reduction.We see lot of plans,announcements & arguements on this issue.But what ever may be the case consumer is still suffering with expensive prices of the steel.Due to several technical problems like breakdown and management standards which are not upto the mark,our steel sector fails to meet the requirement of steel in market.Capitalizing on this Secondary Steel Industries are increasing the cost of steel/ton ranging between 5000Rs to 10,000Rs.So obviously consumer will suffer and Secondary Steel Industries are gaining by taking the market into their clutches.This has shown a great impact on Indian Construction sector.

            Apart from these our Central Minister for steel&iron sector Ram Vilas Paswan is working hard to keep the prices under control by adopting several useful measures. However situation seems to oppose his good will to keep the cost under control as the cost of raw material & input cost are increasing day by day.  

          But earlier there was a different atmosphere for which our government recommended some measures.But after a thorough analysis on the present situation it with drew some of its measures just to make the price of steel with in reach of the middle class consumer.Actually earlier prices of steel and iron were less in International market when compared to the price in Indian market.Considering this fact and inorder to increase the foriegn exchange and encourage the exports of iron & steel it introduced some tax reduction and relaxation schemes like Advance License Scheme & DEPB(Duty Entitlement Pass Book)scheme.For those who use DEPB scheme can have reduction of 1100Rs per ton,and for those who use Advance License Scheme can have a relaxation from tax on raw materials used in production of steel/ton, that has to be exported. 

           But now keeping in mind about the consumer’s interest Govt made DEPB scheme invalid, keeping the Advance License scheme undisturbed.The reason behind this was,cost of steel and iron in International market is higher than in Indian market.There fore so many industries were opting for export only to get more profits.This was also a main reason for the raise of cost.However according to the exports view this may not bring the expected change in steel and iron sector as still industries can gain more through exports only as steel and iron costs are considerably higher in International market when compared to Indian market.

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