Steel panel to study input crisis

The ministry of steel has formed an empowered joint committee to resolve the crisis over coal and coke shortage.

Speaking on the sidelines of a seminar organised by the Joint Plant Committee (JPC), S N Dash, joint secretary in the ministry of steel, said the committee had representatives from steel PSUs like Steel Authority of India Ltd (SAIL) and Rashtriya Ispat Nigam Ltd (RINL).

The committee would also negotiate with companies in Australia, US and Canada for availability of coal and coke.

However, Dash pointed out that the bargaining power with Chinese coke producers was poor as dependence on China from domestic steel producers for coke was to the extent of 80-85 per cent while China's dependence on iron ore fines from India was only 7-8 per cent.

Chinese Iron and Steel Association (CISA) had shown interest in barter arrangement with India, trading iron ore fines for coke, when the Indian delegation visited China last year.

Dash admitted raw material prices had increased substantially but could not comment as to whether this was cause for any increase in steel prices.

"The decision to keep price increases on hold till June was an independent decision of the producers and there was no pressure from the government" said Dash.

He maintained the ministry had no role to play in prices. Dash said, earlier JPC used to control prices, but, in the de-controlled regime the ministry had no role in price determination.

When asked whether there was scope for further rationalisation of import duty, he said, the ministry would take a decision based on circumstances.