Small Units To Get Steel Supplies Through State-level Corporations

New Delhi, April 15 | Updated: Apr 16 2004, 05:30am hrs
The steel ministry has decided to route iron and steel supplies for small-scale units through state-level industry corporations instead of units procuring them directly from primary steel producers.

This would result in saving of freight charges for these units as they would not have to go outside the state for raw material. Earlier they were given certain benefits under a joint plant committee rebate scheme. With control regime no longer there these benefits have been withdrawn and instead the funds transferred to state corporations which will now negotiate directly with steel majors like Ispat Industries, Essar Steel and Jindal Vijaynagar Steel Limited (JVSL), said a spokesperson of the ministry of steel.

State corporations in Kerala, Karnataka and Tamil Nadu have already given their consent to lift material from the companies.

However, in states where such corporations have not been functioning or are inactive, the supplies will be routed through National Small Indus-tires Corporation (NSIC).

NSIC will have to submit to the ministry of steel a list of SSIs to whom material will be given so that there is no duplication of activites.

The ministry spokesperson said, The decision to streamline iron and steel supplies to small-scale units was taken at a meeting held here recently between Small-scale Industries Associations and secretary, steel, Binoo Sen.

Major steel producers, NSIC and representatives from small-scale industry associations participated in the meeting. The users will be required to file documentary evidence to ensure that genuine units recieve supplies and that these do not find way in the balck market.

Anoter meeting will be held shortly wherein producers will indicate quantity available and final allocation of supply of material will be decided for 2004-05 period, the official added.