EEPC wants MMTC to handle steel imports

On the event of the unexpected rise in the steel prices, the engineering exporters are planning to form a consortium in order to import steel.

About 200 exporters have responded to the call made by the Engineering Export Promotion Council (EEPC) and approached the Minerals and Metals Trading Corporation (MMTC) to arrange the import of the required amount of steel.

"Since the instead of passing on the 2 percentage point reduction in Cenvat, the steel producers raised prices by Rs 1,500 to Rs 3,000 a tonne, so we are planning to form a consortium so that a major amount of steel needed could be imported through MMTC," said Rakesh Shah, chairman of EEPC.

Inspite of the reduction in Cenvat in the budget, domestic steel producers have raised prices by Rs 1,500 to Rs 3,000 a tonne for long products, which are used in the construction industry.

For flat products, which go into consumer durables and automobiles, the increase is Rs 2,500 to Rs 3,000 a tonne. According to Shah even after paying the service charges to MMTC, the price of imported steel would be cheaper.

"Since there would be at least 200 exporters in the consortium, the volume of import would be substantial and hence the prices would be cheaper even after paying the designated services charges to MMTC," Shah added.

In a parallel development, EEPC would be hosting the 18th mega industrial exhibition on Indian engineering goods, called INDEE, in Russia's St Petersburg for four days from March 11, 2008.

Around 140 Indian companies would be participating in the exhibition.