Ludhiana Feb 11 (KNN) The Micro, Small and Medium Enterprises are (MSMEs) are so disappointed with the imposition of Minimum Import Price (MIP) on steel and iron products that they have alleged that the Government at the Centre is blindly favouring the big companies. The sector demands that the duty should be.

“Central Government is totally favouring the big companies and is least bothered about the common people,” said Rajeev Jain, General Secretary of United Cycle and Parts Manufacturers' Association (UCPMA) while talking to KNN.

“The imposition of MIP is just to benefit the big companies,” he alleged adding that Government is anti-MSMEs.

The profits of big companies like Tata, Jindal steel have increased rapidly. Even companies under Steel Authority of India Ltd (SAIL) are in huge losses,” he revealed.

Stating that the ‘Make In India’ programme is only for the big fishes, he said that there is a hidden interest of the government behind this move.

The small and medium enterprises who are into making cycles have said that they are left with no choice but to either buy the costly steel now or shut down their units.

The entrepreneurs from Ludhiana highlighted that as it is they were facing cut throat completion from the Chinese imports, now imposition of MIP will make situation tougher for them.

The cost of manufacturing cycle would go up steeply now, the entrepreneurs cried saying that, “We are expecting more Rs. 2000 spending on a ton of steel to buy.”

Not only the cycle manufacturers, the entire downstream steel industry is crying on the issue and have been reaching out to the PM to revoke the duty.

Raj Kumar Singhla, Vice President of Fastener Manufacturers Association of India (FMAI) said that industry is very disturbed as they have to spend more on the orders which were fixed at earlier rates.

He demanded that duty should be increased on the finishing goods rather than the raw materials.

“Government is just doing reverse of it,” he cried.

The government has imposed a minimum import price (MIP) ranging from $341 to $752 per tonne on 173 steel products to provide relief to local steel makers hurt by an increase in cheap imports of these items. (KNN Bureau)