Steel ministry to bring discounts for MSME sector

New Delhi, Mar 28 (KNN) As steel prices continue to rise due to the invasion of Ukraine by Russia, the steel ministry is looking for some reduction for the Micro, Small and Medium Enterprises (MSME) sector.

Union Minister of Steel RCP Singh said in a press conference “Prices are deregulated and are decided by demand and supply. We had discussions with steel companies and they have agreed to provide a discount of Rs 2,000 to Rs 2,500 per MT to the MSME sector,”.

Singh added that prices of steel have increased due to tensions between Russia and Ukraine. 

Ukraine and Russia together exported about 55 MT steel to various countries across the globe. This supply has been disrupted due to the war and hence there has been a price increase of 5% to 7%, Singh further said. 

Singh was speaking on the sidelines of a conference called to discuss the issues concerning the secondary steel sector. 

The steel ministry is also in discussions to come out with a policy to aid the secondary steel sector, which could bring value addition and produce speciality steel. 

Speciality steel is being used extensively by the auto sector, space sector and will be required by the drone sector too. 

The government has come up with a policy to promote drone manufacturing in India. 

During 2020-21, India imported steel worth Rs 42,000 crore and the secondary steel sector can help us reduce this in the coming years, said Sanjay Singh, secretary, ministry of steel.

Sanjay added that the secondary steel industry contributes to 45% of India’s steel production and contributes over half of the sector's job market. (KNN Bureau)