Govt Mint To Import Coin Blanks Again

We have definite information that IMG has recently finalised a global tender to import 4,000 tonnes of stainless steel coins, said Steel Plant Employees Union general secretary P Pannerselvam.

In 1994, IMG went in for import to ensure that the coin blanking facility at the Salem steel plant was closed down, Pannerselvam said in a memorandum to the Prime Minister and Union finance minister.

A repeat of 1994, he said, will hit the performance of the Salem steel plant and cause loss of revenue to the government.

The Salem steel plant set up an ultra-modern stainless steel coin blanking facility in 1991 at a cost of Rs 18 crore. It was meant to serve as a captive unit for the government.

 

The company created a capacity of 3,000 tonnes per annum, keeping in view the IMG needs. The plant has so far supplied over 13,000 tonnes of stainless steel blanks to the government mint. Its quality and adherence to schedules has come in for praise by the IMG.

Nevertheless, the IMG top brass decided to import 4,000 tonnes of stainless steel blanks through a global tender in 1994 and persuaded the government to waive customs duty.

The customs duty cut cost the exchequer additional revenue of Rs 20 crore over and above the cost of coins