Union minister for steel Ram Vilas Paswan on Tuesday assured the steel industry that the government will take steps to support it. ?The steel industry has supported the government during inflation. We would certainly reciprocate the gesture,? he said. There will be rationalisation of export and import duties to bail out the steel industry, the minister hinted.
A meeting of steel companies has been convened on October 18 to discuss the situation. After listening to their demand, the government would take a decision, he added. He, however, said demand for steel in the domestic market would continue growing at a rate of 13% as against the production growth rate of 6%.
On reports that some of the steel projects have been put on hold, Paswan said, ?I don?t think there will be pressure on the promoters to withdraw projects.? The revised National Steel Policy has put the steel production target at 124 million tonne per annum by 2010-11 and about 300 to 350million tonne per annum by 2020 in the country, he said.
On the merger of Rastriya Ispat Nigam Ltd (RINL) of Vizag with Steel Authority of India Ltd (SAIL), Paswan said the process has met with a roadblock as the employees of RINL are against it.
SAIL?s acquisition of Nilachal Ispat Nigam Ltd (NINL), a unit jointly promoted by the Orissa government and MMTC, is also not materialising as the promoters are not favouring the proposal.
Paswan, who is also the Union chemical and fertilizer minister, was here to address a rally of his political party. Expressing concern over the rising subsidy on fertiliser, the minister said the total subsidy outgo has touched Rs 1,19,000 crore this year. This is against Rs 15,000 crore in 2004. He said the rise in fertiliser prices has pulled up the subsidy cost.