New Delhi, 14 Dec (KNN) The nation wide protest held by MSMEs against increase in raw material prices has led the steel companies to possibly extend discounts on steel used as intermediates by MSMEs with turnover up to INR 100 crore, and to exporters, for their production activities. 

“Steel manufacturers are considering the demand for a volume discount of about ₹3,000 per tonne to Micro, Small, and Medium Enterprise (MSME) units with turnover up to INR 100 crore, and to exporters, on steel sourced as inputs, which could be extended on a quarterly basis. A final decision on the matter will be taken soon,” as published in BusinessLine.

This development comes after last week’s meeting between the Minister of Commerce and Industry, Piyush Goyal, and leaders of steel companies.

The Commerce Minister had urged them to consider offering some relief to small industries and exporters using steel as an input for manufacturing of components.

Companies such as Steel Authority of India Limited (SAIL), Rashtriya Ispat Nigam, JSW Steel, and Tata Steel were some of the leading companies. 

Union Minister of Steel and MSME, Ram Chandra Prasad Singh and Narayan Tatu Rane also participated were also present in the meeting. 

“While steel producers seem ready to offer some concession, they want it to be confined to only manufacturing units and be strictly commensurate with their manufacturing capacities,” the source said.

A portal will be set up where steel users will fill in their details along with the quantities they require for the purpose of proper identification of units that are to be supplied steel at a discount rate.

“Their demand would be vetted and certified by industry associations to ensure that quantities sourced at discounted prices are not higher than what is required by a unit,” the source explained.