New Delhi, Nov: Soaring steel prices for more than 18 months have finally drawn government's attention with the steel ministry asking all the majors not to increase prices regularly as it was hurting the consumer industry. "Though government has no role to play as the steel price are market driven, the user industry is suffering due to continuous price increase and we have to take care of that," Steel Minister B K Tripathi told reporters.
"Small scale consumer industry has made numerous representations to the ministry in this regard. We have discussed the matter with steel majors including Steel Authority of India Ltd (Sail), Rashtriya Ispat Nigam Ltd (RINL) and Tata Steel and they have assured to consider it."
Steel producers like Sail and Tisco have reported healthy financial performance during the first half of 2003-04 and both have attributed more than 50 per cent of performance to price factor.
Sail, which has almost turned around, reported a swing of about Rs 1,200 crore in the first six months.
Tripathi, who inaugurated the steel pavilion at the on-going India International Trade Fair, said steel production during the current financial year would cross the 35 million mark.
Bureau Report