Rajkot: Manufacturers of line pipes, the specialised steel pipes used in the oil and gas and liquid transport industry, are facing a potential challenge due to the effects of the safeguard duty proposed to be imposed on imported steel by the govt of India to protect domestic producers.
The Federation of Kutch Industries Association (FOKIA), an umbrella organisation of all industries set up in Kutch post-earthquake, has appealed to the govt of India to exempt API-grade hot rolled (HR) coils and plates used to manufacture line pipes from the proposed duty, citing an adverse impact on the downstream product.
Post-earthquake, Kutch has emerged as a hub of line pipe manufacturing with a cumulative top line of Rs 50,000 crore, FOKIA said.
The Directorate General of Trade Remedies (DGTR) in December last year launched an investigation into the safeguard duty on Dec 19, 2025.
FOKIA said this move could inadvertently harm downstream industries, particularly the pipe industry, which heavily relies on imported high-quality API-grade steel. The industry body said that the imposition of safeguard duties could escalate the cost of raw materials, leading to delays in infrastructure projects.
“It’s a challenge for the local steel mills to consistently produce API-grade steel with timely deliveries, which results in delays in project execution. This will ultimately affect overall infrastructure development. Moreover, the API-grade steel produced locally is not acceptable in many countries where line pipes are exported,” said Nimish Phadke, Managing Director, FOKIA.
Chintan Thaker, chairman, Assocham Gujarat Council, told TOI: “We understand the capital-intensive nature of the primary steel industry and the challenges faced by them. However, we will have to understand that very high duty and restrictive practices will hurt all the steel-using downstream industries, and especially those who are exporting their products in the global market will be losing their competitiveness.”
Thaker added there are certain grades of steel like API steel which have negligible production in India and are consumed by pipe mills. “It would not be fair to restrict the import of grades which are not produced in India or not produced to global quality standards. The growth of one industry cannot be at the cost of another industry,” he said.
Recently, a group of line pipe manufacturers met govt officials after their views were sought on the imposition of safeguard duty.
Among other demands, the industry has urged the govt to allow a grace period of at least two years before imposing duties to give local steel mills time to update their quality of products to API standards.
Rajkot: Manufacturers of line pipes, the specialised steel pipes used in the oil and gas and liquid transport industry, are facing a potential challenge due to the effects of the safeguard duty proposed to be imposed on imported steel by the govt of India to protect domestic producers.
The Federation of Kutch Industries Association (FOKIA), an umbrella organisation of all industries set up in Kutch post-earthquake, has appealed to the govt of India to exempt API-grade hot rolled (HR) coils and plates used to manufacture line pipes from the proposed duty, citing an adverse impact on the downstream product.
Post-earthquake, Kutch has emerged as a hub of line pipe manufacturing with a cumulative top line of Rs 50,000 crore, FOKIA said.
The Directorate General of Trade Remedies (DGTR) in December last year launched an investigation into the safeguard duty on Dec 19, 2025.
FOKIA said this move could inadvertently harm downstream industries, particularly the pipe industry, which heavily relies on imported high-quality API-grade steel. The industry body said that the imposition of safeguard duties could escalate the cost of raw materials, leading to delays in infrastructure projects.
“It’s a challenge for the local steel mills to consistently produce API-grade steel with timely deliveries, which results in delays in project execution. This will ultimately affect overall infrastructure development. Moreover, the API-grade steel produced locally is not acceptable in many countries where line pipes are exported,” said Nimish Phadke, Managing Director, FOKIA.
Chintan Thaker, chairman, Assocham Gujarat Council, told TOI: “We understand the capital-intensive nature of the primary steel industry and the challenges faced by them. However, we will have to understand that very high duty and restrictive practices will hurt all the steel-using downstream industries, and especially those who are exporting their products in the global market will be losing their competitiveness.”
Thaker added there are certain grades of steel like API steel which have negligible production in India and are consumed by pipe mills. “It would not be fair to restrict the import of grades which are not produced in India or not produced to global quality standards. The growth of one industry cannot be at the cost of another industry,” he said.
Recently, a group of line pipe manufacturers met govt officials after their views were sought on the imposition of safeguard duty.
Among other demands, the industry has urged the govt to allow a grace period of at least two years before imposing duties to give local steel mills time to update their quality of products to API standards.