Steel clusters' woes find echo in Parliament
Updated: Jul 14, 2014 03:52:38pm
New Delhi, Jul 14 (KNN) The problems of small and medium steel producers, especially in clusters like Ludhiana and Mandi Gobindgarh found an echo in Parliament when a few members raised the issue of industry closures and job losses in these clusters, in the Lok Sabha.
While one of the members, Tathagata Satpathy from Dhenkanal, Odisha wanted to know whether the Government can link price of iron ore with the end product, Minister for Steel, Narendra Kumar Tomar said that the prices are determined on the basis of the international situations and the companies are free to set their own prices.
“These companies, which get prospecting and mining rights, take the iron ore a sort of free of cost. But, when they sell it in the market, they are talking about international pricing,” Satpathy said.
The issue was raised by Ravneet Singh from Ludhiana, who said that as many as 50 per cent of the clusters around Ludhiana and Mandi Gobindgarh have closed. “The closure of remaining industries would render lakhs of workmen jobless besides loss of investments worth several thousand crores of rupees.”
He also asked the government whether there is any proposal to reduce the import duty on scrap to zero.
On this, the Minister replied the government will consider the suggestions given by the member. Several of these clusters facing difficulties use scrap as raw material.
Further, Singh said that the raw material should be made easily available to the domestic producers of steel. He asked about the immediate steps he proposed to be taken to provide early necessary clearances for supply of iron ore and coal to the domestic industry so that they are able to produce sufficient steel for the needs of the country and are also able to export. (KNN Bureau)
While one of the members, Tathagata Satpathy from Dhenkanal, Odisha wanted to know whether the Government can link price of iron ore with the end product, Minister for Steel, Narendra Kumar Tomar said that the prices are determined on the basis of the international situations and the companies are free to set their own prices.
“These companies, which get prospecting and mining rights, take the iron ore a sort of free of cost. But, when they sell it in the market, they are talking about international pricing,” Satpathy said.
The issue was raised by Ravneet Singh from Ludhiana, who said that as many as 50 per cent of the clusters around Ludhiana and Mandi Gobindgarh have closed. “The closure of remaining industries would render lakhs of workmen jobless besides loss of investments worth several thousand crores of rupees.”
He also asked the government whether there is any proposal to reduce the import duty on scrap to zero.
On this, the Minister replied the government will consider the suggestions given by the member. Several of these clusters facing difficulties use scrap as raw material.
Further, Singh said that the raw material should be made easily available to the domestic producers of steel. He asked about the immediate steps he proposed to be taken to provide early necessary clearances for supply of iron ore and coal to the domestic industry so that they are able to produce sufficient steel for the needs of the country and are also able to export. (KNN Bureau)
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