Industry body seeks concessions for steel sector
Updated: Nov 29, 2014 11:56:42am
New Delhi, Nov 29 (KNN) Industry body urged the Reserve Bank of India (RBI) to advise all commercial banks to extend the credit for payment of penalties due to coal blocks’ de-allocation by the Supreme Court.
“The aggregation of challenged raw material availability owing to increased price trends, declining end products’ demand together with falling steel prices have been causing a severe blow to the domestic steel industry resulting in closure of numerous small and medium steel factories thereby putting operations and viability of larger ones in question,” said The Associated Chambers of Commerce and Industry of India (ASSOCHAM) in a communication addressed to the RBI governor Raghuram Rajan.
Citing that the country has been passing through a very tough phase for past five years owing to low metal demand, ASSOCHAM secretary general DS Rawat said problem has aggravated due to coal blocks’ cancellation by the apex court thereby creating uncertainty over availability of coal at competitive prices in the future.
The industry body also sought longer maturity of term loans for projects in operation to coincide with useful life of the plant to ease the pressure of cash flow. It suggested for refinancing of rupee term loan through foreign currency loans and also refinancing of external commercial borrowings (ECBs) through fresh ECBs. (KNN/ST)
“The aggregation of challenged raw material availability owing to increased price trends, declining end products’ demand together with falling steel prices have been causing a severe blow to the domestic steel industry resulting in closure of numerous small and medium steel factories thereby putting operations and viability of larger ones in question,” said The Associated Chambers of Commerce and Industry of India (ASSOCHAM) in a communication addressed to the RBI governor Raghuram Rajan.
Citing that the country has been passing through a very tough phase for past five years owing to low metal demand, ASSOCHAM secretary general DS Rawat said problem has aggravated due to coal blocks’ cancellation by the apex court thereby creating uncertainty over availability of coal at competitive prices in the future.
The industry body also sought longer maturity of term loans for projects in operation to coincide with useful life of the plant to ease the pressure of cash flow. It suggested for refinancing of rupee term loan through foreign currency loans and also refinancing of external commercial borrowings (ECBs) through fresh ECBs. (KNN/ST)
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