Tata Steel plans to invest Rs 4,500 crore this fiscal for various projects, followed by Rs 7,000 crore in 2011-12. Such huge investments have not been seen in the last 15-20 years. "We are looking at ways to deleverage the balance sheet for funding these projects," said Mr Ratan Tata, Chairman, at the company's 103"1 annual general meeting here on Friday. The company is also in the process of placing orders for the six-million tonne Orissa project and should start production in three to four years though it has already been delayed by six to seven years. "There is no doubt that the global meltdown is behind us. The only speculation is what shape the recovery will take, whether 'L', 'U', 'W or a hockey stick," he said.

LEVY OF ENTRY TAX
The Punjab Cabinet at its meeting held on 11-08-2010 at Chandigarh levied entry tax on certain new items and amended certain notifications already issued. These notifications shall come into force w.e.f. 18-08-2010. The details are as below:-

TRADE NOTICE NO. 17-CE/2003 DATED 10/09/2003

Procedure/ Conditions for removal of goods for Job Work-
Notification No. 17/2003-CE(NT) dated 13.03.2003 wherein Rule 16A has been inserted

    Attention of trade and all others concerned is invited to the Govt. of India Ministry of Finance (Department of Revenue). New Delhi  Notification No. 17/2003-CE(NT) dated 13/3/2003 under which Rule 16A for removal of goods for Job Work  etc. has been inserted in Central Excise Rules, 2002. Following procedure/conditions are laid down in terms of Rule 16A.

2.    Procedure/Conditions for movement of goods under Rule 16A for job work.

i)    An assessee who intends to clear goods under Rule 16A of the Central Excise Rules, 1944 and /or Notification No. 17/2003-CE(NT) dated 13.03.2003 will give intimation/undertaking in triplicate in the form (enclosed as Annexure-1) to the jurisdictional Asstt./Deputy Commissioner complete in all Respects
ii)    After giving intimation /undertaking to the competent authority, the assessee will be entitled for clearance of goods.
iii)    The removal of such goods take place under specific challan in the performa (enclosed as Annexure-II) . Each challan should be in triplicate and each copy  of the challan should ne in different colour ( as indicated). All the set of pages should be serial machine numbered. The original and duplicate of the challan should accompany each consignment to the out side factory where processing is to be done, or operations are to be undertaken. Where the raw material/semi finished goods are sent direct from the supplier without first coming into the factory of the applicant manufacturer then the name of such supplier be indicated with the challan. Delivery documents presently being used by assessees may continue to be used provided the information as required in the challan are available in such documents.
iv)    A simple account of the goods removed for further processing or manufacture etc., in term of rule 16A or Notification No. 17/2003-CE (NT) dated 13.03.2003 to a place outside the factory should be maintained by the parent factory in the enclosed performa. (annexure-iv) , similarly a simple account of the goods received from the parent factory and returned to them after processing /manufacture should be maintained by the factory receiving such goods in the performa as such as the consignment is removed from /received at the particular factory.
v)    The quantities covered by a single challan should normally be processed / stored dispatched together. However where this is not possible and goods dispatched in batches , proper accounts for such batch-wise dispatches should be maintained.
vi)    After the processing is complete, the processing factory should make suitable endorsement on both copies of the challan and return the goods along with the scrap if any to the parent factory with the duplicate challan.
vii)    In case the goods processed by a processor /job worker are to be sent to another manufacturer processor /job worker then, the first job worker may remove the goods under the specific challan (with the original and duplicate accompanying the goods) in the performa enclosed as Annexure-III. The first processor /job worker should make a suitable endorsement to the effect that the goods has been sent to the second processor /job worker and return the challan (annexure-II) under which he receives the material to the parent factory. After completion of the manufacturing operation at the premises of such other processor /job worker , a suitable endorsement to be made on both copies of the challan (Annexure-III) and the goods may be returned to the parent factory with the duplicate challan. The processor/job worker will also maintain accounts as specified in Annexure-V

Any consignment sent by the parent factory to other place for processing /testing etc. , should be received by the parent factory within 180 days from the date of removal , or such extended period as the jurisdictional superintendent may allow.

3. All the trade association, chamber of commerce and member of regional advisory are requested to bring the contents of this Trade Notice to the attention of all their members and other concerned.

COST RELIEF
The steel industry could see signs of relief on the input front, as raw material prices of iron ore and coking coal are set to drop in the coming months. Iron ore prices have already started coming down and is expected to fall further with the Karnataka Government ban on exports. "We support the action taken by the Karnataka Government to ban iron ore exports from the State. This stringent measure is a step in the right direction as it will bring to public domain the exact nature, extent and modus-operandi of illegal mining that is rampant in Karnataka. We are in favour of a complete ban on iron ore exports from the country," said Mr Jindal.

China's massive steel sector, which has begun cutting production in the face of falling prices and softening demand, is nearing the break-even point, the China Iron and Steel Association (CISA) said on Friday.

EXTENDING DROP
"Most steel products prices have extended falls in July, to a level almost below the mills' production costs, and this will continue supporting prices," CISA said in a statement on its Web site. The production cuts, and the limited room for further falls in margins, may cause steel prices to rebound slightly in the near future, CISA said. CISA also predicted China's exports of steel products would fall sharply in the second half of the year, adding to pressure on the sector. "Moreover, there are still uncertainties for the economic recovery in the euro zone, and Chinese steel exports will fall sharply in the second half of this year, putting more pressure on the domestic market," it said. CISA blamed rising international trade protectionism and the removal of export tax rebate for some steel products earlier this week for the tougher export environment. While exports slow, the domestic market is also gloomy, with mills facing a squeeze from two directions: steel prices are under pressure from slower growth in China's car and building sectors, but input costs have not fallen as fast, Average prices for imported iron ore rose by 8.82 per cent from a month earlier to $139.85 per tonne cost & freight in June, while prices for domestic ore, coke and scrap were still relatively high, CISA said. At the same time, steel production is still growing fast on an a year-on-year basis and high inventories will weigh on the sluggish market, the association warned. Inventories for five major steel products in 26 major cities stood at a combined 15.72 million tonnes by the end of June, down by 0.4 per cent or 60,000 tonnes month on month. "Steel inventories have remained high, further dampening steel prices,"it added, "while the supply glut on the domestic market hasn't been effectively eased, as is evident from continued high daily average steel production." China's daily crude steel output averaged 1.79 million tonnes in June and fell for the second month in a row, but by a mere 1.0 per cent from May, indicating that only small steel mills have begun making output cuts.