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CII recommends slew of measures to revive growth of steel industry

27 Apr 2020 Evaluate

Confederation of Indian Industry (CII) has recommended the government a slew of measures to revive the growth for the survival and sustainability of Indian steel industry, hit hard by nationwide lockdown due to the coronavirus (COVID-19) pandemic. In a representation to the government, CII has raised the various issues, the steel sector is facing, and recommended steps to be taken address these challenges. It noted that spread of COVID-19 has impacted the production, demand and supply of steel in the country and many steel plants are running at lower capacity.

CII further stated that with a slowdown of all economic activities due to the nation-wide lockdown amidst steep drop in margins, the steel industry is likely to face huge drop in sales along with stress on margins. It also said the entities are burdened to service debts and will not be able to even execute business plans nor do any expansions. To enhance demand, it suggested measures like time-bound implementation of infrastructure projects announced by the government and package for steel consuming industries like auto and infrastructure, besides a ban on imports of seconds, defectives and re-rollable scrap steel, which constitute hazard to Indian consumers.

To improve the supply chain disruption, the industry body suggested that port authorities should relax port charges till situation normalizes, waiver of container detention and ground rent charges at the ports for import and export activity, besides no restriction on inland movement of imported goods to avoid congestion at port and round the clock custom clearance. It also recommended a dedicated freight corridor for steel and other bulk materials and completion of NW5 (national waterways 5) for facilitating steel and raw material movement.


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