Hold prices, govt tells steel firms

Wed, Apr 2 01:20 AM

The government on Tuesday sent out a strong warning to steel companies, telling them to bring down prices by 10-20 per cent within a month, failing which the industry would have to face tough measures. "The message is clear that the government is serious about bringing down inflation.

If steel companies do not bring down prices on their own, the government will have to take its own measures," Commerce Secretary G.K.

Pillai said after a meeting with iron ore producers here. Steel Minister Ram Vilas Paswan has mooted the idea of a regulator and has argued in favour of withdrawing export incentives for the steel sector.

On Tuesday, Pillai said a wide range of measures were available with the government to rein in steel prices. "You name it and it is there.

We are holding talks with producers to understand the dynamics of pricing. We will then take some measures," he said.

The package of new measures being considered includes a cut in excise duty on steel and efforts to persuade producers to keep prices stable. Pillai said the government would call steel producers for a meeting on prices in the next two days.

Among the measures being considered are reducing duties in inputs such refractories, zinc and met coke. The government is also examining a proposal to lower the excise duty from the existing 14 per cent.

Steel Secretary R.S.

Pandey said iron ore producers had been asked to come back with a solution to control the runaway price line. "They (iron ore producers) will go back, discuss among themselves and come back to us with a solution," he said.

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