"Based on the allocation made in the year 2010-11, a quantity of 7.1 lakh tonnes of iron and steel material will be allocated to the SSICs and NSIC for the year 2011-12," an official said.
State Small Scale Industries Corporations (SSICs) and the National Small Industries Corporation (NSIC) allocate iron and steel from producers like SAIL, RINL and Tata Steel to SSI units and other government departments.
However, the corporations can supply a maximum of 30 per cent of their allocated quantity to government agencies.
The official said that the quantity of iron and steel for allocation to SSIs and government agencies could be increased further during the current fiscal, depending upon the demand.
The government provides a Rs 500-550 per tonne handling charge to the corporations in order to ensure that SSIs get the raw material at their doorsteps.
The government had allocated 6.99 lakh tonnes of steel in 2008-09, 7.43 lakh tonnes in 2009-10 and 7.66 lakh tonnes till December 31 of the 2010-11 fiscal.
Published 14 June 2011, 07:03 IST