Paswan urges steel industry to curtail price rise

The Minister for Steel, Chemicals and Fertilisers Ram Vilas Paswan urged the steel industry to put a curb on increasing prices.

New Delhi, Mar 5 : The Minister for Steel, Chemicals and Fertilisers Ram Vilas Paswan urged the steel industry to put a curb on increasing prices.

Delivering the inaugural address at the "Summit on Mining to Steel Making" organized by the Indian Chamber of Commerce today, Paswan said, "The government has accepted many recommendations of the steel ministry and have even incorporated them in the latest Union Budget. So, whenever there is a price hike it should be related to the rise in cost as any price rise indirectly affects basic consumer goods."

He said that steel producers had responded positively to his request for partial roll back and urged the industry to ensure that any price reduction should be reflected in the retail prices.

He also said that the price monitoring committee can play an effective role only with the cooperation.

On the growth of the steel sector, Paswan said: "The Government is alive to the problems of the steel sector and will take all steps to remove hurdles on increasing capacity. Indian steel sector is set for rapid expansion with production likely to touch 124 million tonnes by 2011-12. The consumption of steel is growing at 14 - 16 per cent at least for next 7 years. Therefore there is a need to expedite the ongoing steel projects."

"One of the critical problems facing the growth of steel sector is the need for a sound policy on allocation of iron ore mines. The steel ministry has always favoured priority in allocation of iron ore mines to the domestic value addition in the country itself. Export of iron ore should be limited to the quantity only after meeting the domestic steel production. There is also a need for conservation of iron ore as well as its scientific use through better technologies and beneficiation methods," he explained.

ANI