BHUBANESWAR: Steel industries have sought immediate intervention of the Centre for revival of the sector which is going through a lean period due to non-availability of iron ore at viable price for closure of mines following Shah Commission report and sharp drop in steel price for dumping of steel from China and Russian ruble depreciation.
Drawing the attention of Union Steel Secretary Aruna Sharma during her visit to the State on Friday, the Indian Chamber of Commerce (ICC), Odisha chapter has suggested a set of measures which can help revive the steel industry.The industrial body has demanded financial restructuring for non-performing assets in steel sector and revision of input cost besides a robust trade policy and production of iron ore through e-auction platform.
While iron ore and chrome ore are sold by OMC through e-auction and long term linkage arrangement, the buyers are committed to purchase substantial quantities as per long term agreement. The industry body suggests that OMC needs to fix the floor price in a transparent manner preferably on cost plus basis and allow the market to decide the price during auction.
Chairman of ICC (Odisha chapter) Vishal Agarwal said reverse auction may be introduced through which parties can bid prices till the entire quantity put up for auction is sold. "A timeline for auctioning of mining lease, which have been deemed extended upto March 2020, should be set to ensure smooth transition and no disruption in supply," he said.
Though the State Government has notified ceiling on road transportation rates, many transport associations are not adhering to it which has resulted in hike of logistic cost. A guideline needs to be issued to streamline transport rates in mining areas with stipulations for cancellation of licence of transport contractors who charge more than notified rates, Agarwal suggested.
Demanding that the electricity duty and clean environment cess of `400 per metric tonne be subsumed in GST, the ICC members said the cross subsidy charges are extremely high which need optimisation.
The ICC also has suggested that a steel specific oversight committee for banks to restructure loans with existing promoters should be set up and the scheme of sustainable structuring of stressed assets to be amended to cover cases where sustainable debt is below 50 per cent.