Mumbai, Sept. 24 :
Mumbai, Sept. 24:
The Union government has reinforced anti-dumping duties on imported purified terephthalic acid (PTA)
and extended the ambit of the
levy to cover imports from two countries-Spain and Japan-instead of one (Spain) stipulated earlier.
The move is likely to benefit the Ambani-owned Reliance Industries which is the biggest producer of PTA in the country.
The duties will range between $ 8 and $ 20 per tonne and will cover imports from companies like Interquisa of Spain and Mitsui Chemicals of Japan.
At present, international prices of PTA has softened to around $ 450 per tonne after hovering around the $ 470 per tonne some time ago. On the other hand, domestic prices have also softened to Rs 29,400 per tonne as against Rs 30,100.
The designated authority set up in commerce ministry last year proposed an anti-dumping duty of Rs 521 per tonne on PTA originating from Spain on grounds of injury to Reliance
However, the authority did not impose any duties on PTA imported from Japan, Malaysia and Taiwan against which Reliance had also filed a petition.
Sources said following this order, an appeal was again filed with the Customs, Excise and Gold (Control) Appellate Tribunal (Cegat), which later called for Japan to be included in the list. Consequently, the authority made the necessary modification in its order.
Though sources close to RIL felt the government decision would have a positive impact on its topline and bottomline, industry circles felt the impact would be limited as major exporting countries are still left out of the order.
'We must also remember that imports of PTA to the country have diminished over the years. Therefore, it will not have much impact on RIL's balancesheet or on the industry,' an industry expert said.