“Manufacturers of long steel products, prices of which had increased sharply, have agreed that they will roll it back. It is expected that these companies including Tata Steel will provide relief of Rs 2,000 per tonne to ensure that common man is not hit,” Steel Secretary R S Pandey said after a meeting with major steel manufacturers here.

Transparent pricing

Mr Pandey indicated that prices of another steel product galvanised corrugated sheet, which has also increased recently would be decreased by Rs 500-Rs 1,000 per tonne.

The steel manufacturers who attended the meeting include Steel Authority of India Limited (SAIL), Tata Steel, JSW, Jindal Steel and Power Ltd, Essar, Ispat, Bhusan Steel and Power Limited.

Mr Pandey said the steel companies had assured the government that they would adopt a “transparent” pricing system and would regularly update their respective company portals on prices.

In regard to concerns of small and medium steel manufacturer producers, Mr Pandey said major steel producers had decided to increase allocation to their smaller counterparts by 20 per cent to six lakh tonnes from 4.9 lakh tonnes.

Transport charges

The major manufacturers will also bear transport charges of Rs 400 per tonne in addition to Rs 550 per tonne being already provided to small steel makers by them, Pandey added.
The contract between the small and big producers will be at least for a period of three months, Ministry sources said.

A few days back Commerce and Industry Secretary G K Pillai after a meeting with iron ore producers had indicated that the government was contemplating to take necessary measures to keep the steel prices under control.

“The package of new measures, which are being contemplated, may include a cut in Excise duty on steel and sustained efforts to persuade (steel) producers to keep prices stable,” Mr Pillai had observed.