NEW DELHI: The Confederation of Indian Industry (CII) has sought increased banking exposure and infrastructure status for the steel industry along with fiscal sops on a par with those extended to special economic zones (SEZs).

In a paper submitted to the Central Government, the apex chamber said: "The Government should consider steel industry as a priority industry and provide appropriate fiscal incentives which are provided to other priority sector industries."

While seeking infrastructure status for the steel sector, the CII also demanded increased exposure limits at 25 per cent by way of lending by banks and financial institutions as compared to the prevailing 10 per cent and 15 per cent, respectively.

The chamber suggested that a `Steel Finance Corporation of India' (SFCI) be set up as a special purpose vehicle (SPV) in public-private partnership (PPP) for easy availability of credit to steel projects under implementation.

The paper proposed that while integrated steel plants with a minimum capacity of two million tonnes should be allowed to fix their own rate of depreciation, the duty on project imports for greenfield and brownfield expansion of steel capacities should be scaled down to nil in the next 15 years. Seeking relaxations of curbs on end-use of external commercial borrowings (ECBs) by steel companies to help raise project finance and retire rupee debts, the chamber demanded that securitisation of export receivables be made free from all restrictions.

"The main EPC contractor for setting up a steel plant should get benefits available to a developer as provided in the SEZ Act," it said.

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