Commerce and industry minister Piyush Goyal on Thursday mooted the idea of introducing a border adjustment tax and suggested discussions with the steel industry to protect the domestic players.

He said this tax complies with the World Trade Organisation (WTO).

Goyal urged the industry to target a production capacity of 500 million tonnes within the next decade, up from the current goal of 300 million tonnes by 2030.

Addressing a steel conclave virtually, Goyal stressed the need for innovative approaches to reducing carbon emissions while enhancing productivity and the quality of steel produced in the country. “Let’s leverage artificial intelligence to optimise production, minimise waste, and improve efficiency across the value chain. We should also push for a stronger circular economy,” he said.

Goyal proposed that four to five key industry leaders meet him to deliberate on these critical issues. He acknowledged the government’s inability to extend the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme benefits to the steel sector, citing a shortage of funds.

“I have made considerable efforts on the issue of Border Adjustment Tax in the past, but, unfortunately, without success. However, let us make another attempt,” Goyal said.