'Govt should reduce excise on steel, not squeeze producers'

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Gold the most preferred investment

: talking about India and China? If India does not supply (iron ore), then Brazil will. I believe that government intervention should be more realistic in controlling the minerals. Today, the government supplies most of the minerals, so it has to either create a regulatory set-up or avoid talking about steel issues.

The government should reduce the excise duty on steel, which is a direct cost to the consumer, rather than squeeze manufacturers, triggering unemployment. The government can levy an export duty on iron ore fines. Prices of fines have gone up from $30 a tonne to $200 a tonne and an export duty will not stop buyers. Even a 20-25% export duty will not impact suppliers, nor will it affect Indian manufacturers. This way, the government can neutralise excise duty losses and the export duty will not be a burden for steelmakers.

What about cement price controls?

The government has already taken the required steps, but it should seek a long-term solution with a national policy. The Union government should motivate states that have the limestone and other raw materials so that more cement plants can come up. Imposing controls is a short-term solution. But the government is talking only of temporary steps like reducing the price or the duty.

What is your next goal, and where is your funding coming from?