Problems relating to Trade and Investment on India
15. Price controls |
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Issue |
Issue details |
Requests |
Reference |
| (1) Establishment of Minimum Import Prices | - On 11 December 1998, GOI introduced, as a temporary measure, the minimum price system on imports, under the EXIM (in every five years, currently from April 1997 to March 2002) to put a break on import of cheap steel products. Subsequently, the domestic re-roller users demanded the authority to repeal the measure. Accordingly, the minimum price was readjusted downward, and finally in January 2000, the minimum price system was repealed. However, the domestic steel manufacturers filed suit at the Calcutta High Court. In practice, import of low priced steel continues, with a general understanding that the minimum price system has no effect, pending the outcome of the court proceeding. | - It is requested that GOI repeals the minimum price system. | - Steel and Steel Products (Quality Control) Order |
| (2) Entry Barriers into Power Distribution Sectors by Government Subsidy | - Electric Power Bill by Power Distribution Company is kept at low level by the Government Subsidy. It is a disadvantage on price to a third party, wishing to enter into the power distribution business. | - Gradual deregulation of entry restrictions is requested to encourage entry into power distribution business as a part of overhauls in infrastructure. | - The Electricity Act 2003 |
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