Steel flat products to cheaper by Rs. 4000 per tonne
The Prime Minister, Dr. Manmohan Singh meeting with the CEOs Steel Authority of India Limited, Tata Steel, RINL, JSW, Essar Steel, Ispat Industries Ltd. and representative of Jindal Steel & Power Limited, in New Delhi on Wednesday.
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New Delhi: The CEOs of major steel producing companies, namely, Steel Authority of India Limited, Tata Steel, RINL, JSW, Essar Steel, Ispat Industries Ltd. and representative of Jindal Steel & Power Limited met the Prime Minister, Dr. Manmohan Singh on Wednesday in New Delhi.
These companies produce over 60% of the total steel production in the country.
They shared the Government's concern regarding the inflationary situation in the country and decided to reduce prices of flat products by Rs. 4000 per tonne with immediate effect by producers who effected price increase in April '08.
In addition, prices of rebars and structurals where no increase was effected in April / May'08 are also reduced by Rs 2000 per tonne.
These reductions will be applicable for all steel that gets consumed in India either directly or after further processing.
Further, the Steel Producers will hold these prices for the next three months.
In view of the roll back in prices and self-restratnt by producers on steel exports, the caption of steel industries urged Government not to impose duty on export of steel products.
In order to facilitate investment in steel sector and to augment capacities in the country, which is the long term solution, the allocation and renewal of iron ore and coal mines, should be ensured on priority they said.
The CEOs of the steel producing companies have also urged Govt to impose an ad valorem duty of 15-25% FOB on export of iron ore in order to conserve the mineral. Appropriate reduction in excise duty on steel be considered which will be passed on to the consumer, they further arged.
”NMDC, MOIL and Coal India Limited should reduce prices of their products, which are inputs for the steel industry and the PSUs should give priority to domestic steel producers for supply of inputs before undertaking exports and should, charge long-term international prices” they opined.
The steel industries have also urged the Govt to stop the auction of manganese ore and iron ore by MOIL and NMDC, which is attracting speculative prices in the domestic market.
