Secondary steel producers, who account for 60 per cent of the country's total steel output, today sought formation of a national policy on allocation of mines, to allow them direct access to raw materials, besides primary steel producers, to boost steel output.
"We want that there should be a national policy on the allocation of mines, which allows us to have an access to natural resources as big steel giants have,....This step can provide impetus to country's steel production," All India Induction Furnace Association President JK Arora said here on the sidelines of Steel Expo.
Arora sought level playing field for the secondary steel makers.
He said, "the government should hold auction of mines in which all the competent steel producers take part,irrespective of their size, and get raw material for steel production as per their requirements rather than restricting raw material access to just few big players."
Arora claimed that there was wide disparity between prices at which primary and secondary steel producers got their input "Our input cost comes at Rs. 6,000 per MT which is far more than what primary steel incur," he said.
At present, secondary steel producers get their input including iron ore through traders.
Secondary steel producers also chastised the move of Centre to allot mines or natural resources to foriegn companies. "All the foreign steel makers are just eyeing country's resources and the government is helping them in giving them mining rights," he alleged. MORE PTI CHS MVS
"If we get enough input at reasonable rates, then we have the capacity to raise country's steel production by many times," he asserted.
Induction Furnace Association also hit out at the centre's policy of barring small steel makers from participating in infrastructure projects, despite conforming to BIS standards.
"In major infrastructure projects for providing steel, we cannot participate in spite of the fact that our steel units adhere to all the standards and specifications," he said while demanding removal of such discriminations.
Currently, secondary steel makers involving 650 furnaces across the country, produce 60 per cent of the country's total 72 million tonnes steel output capacity.
Besides, the secondary steel makers suffer from the problem of huge shortage of power in almost all the states. All India Induction Furnace Association has now decided to set up power plants of 500 MW each, on cooperative basis in several states like Gujarat, Rajasthan and UP.
"We will soon sign a MoU with PTC for setting up coal- based power plants and the power so generated from them will be used by us and other industry verticals," he said.
