Steel Ministry says Ircon flouted government policy

By: |
New Delhi | August 06, 2019 3:36 AM

Ircon International, which is executing various rail projects entrusted by the ministry of railways, has been rapped by the steel ministry for ‘flouting’ a government policy that seeks to protect domestic steel firms from cheaper imports. Under the Domestically Manufactured Iron & Steel Products (DMI&SP) policy, government agencies are mandated to use local steel in […]

Steel Industry, Steel Import, Domestically Manufactured Iron and Steel Products, Narendra Modi, BJP, Industry, DMISP, Udhampur, Srinagar, Baramula, Ircon InternationalUnder the Domestically Manufactured Iron & Steel Products (DMI&SP) policy, government agencies are mandated to use local steel in preference to imports to encourage domestic manufacturing. A waiver is granted by the ministry of steel when the product required is not available, domestically.

Ircon International, which is executing various rail projects entrusted by the ministry of railways, has been rapped by the steel ministry for ‘flouting’ a government policy that seeks to protect domestic steel firms from cheaper imports.

Under the Domestically Manufactured Iron & Steel Products (DMI&SP) policy, government agencies are mandated to use local steel in preference to imports to encourage domestic manufacturing. A waiver is granted by the ministry of steel when the product required is not available, domestically.

Hard-pressed to meet deadline of commissioning of the Udhampur-Srinagar-Baramula section, Ircon placed an order with an Austrian company for 2,100 tonne head-hardened rail for Banihal-Arpinchala section of the project, apparently without seeking the waiver. Ircon will issue tender for the balance requirement of 4,900 tonne next year.

“The global tender by Ircon and placement of order of 1080 (hard hardened) without waiver from MoS has gone against the very spirit of this (DMI&SP) policy (which is approved by the Union Cabinet) and was viewed with concern by the standing committee,” reads the minutes of a meeting of the standing committee, headed by the steel secretary, held on July 12.

The standing committee overseas the implementation of the policy. “Ircon stated that for the balance quantity of 4,900 tonne, which will be required next year, they will seek exemption,” it said.

The committee has asked SAIL to start producing hard hardened rails and other Indian manufacturer to gear up qualifying the tender criteria.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Tremendous potential for proliferation of public Wi-Fi hotspots in India: Trai Chief
2From new layouts to guided meditation exercises, Microsoft Teams, Viva get updates for hybrid work mode
3Air India to sell real estate assets; may garner up to Rs 300 cr