The Centre is likely to fulfil the long-pending demand for import of unshredded metal scrap at Inland Container Depot (ICD) in capital Raipur, but with certain riders.
The move will be a boon for the sponge and iron industry in the state, which contributes 30 per cent of steel and sponge iron production to the total national pie.
“In order to improve export from the state, Chhattisgarh has been relentlessly pursuing approval of import of unshredded scrap to Raipur ICD. Last week, we got a letter from the Centre that its import will be allowed only with certain conditions,” State Industries Department Director Kartikeya Goyal told PTI.
Efforts by Chief Minister Raman Singh and other senior officials have now borne fruit, he said, adding that it will be the biggest achievement of the state.
“This would improve exports from Chhattisgarh as unshredded scrap is used as raw material for melting units and integrated steel plants which are more than 200 in the state. These units require about 2.5 lakh mt HMS—I and HMS-II scrap annually,” Goyal said.
At present, the unshredded scrap comes from ICD in Nagpur, Kolkata and Mumbai, which are far away from Raipur, and adds significantly to transportation cost for the exporters.
The facility will ensure a big cost advantage to sponge and iron industries, he said.
Besides, this measure will also address the current issue of low container availability.
“There is scarcity of about 3,500 containers at ICD in Raipur. The containers which will be used for the import of HMS could also be used for transportation of other commodities,” he added.
Rice is one of the major exports from the state. The rice exporters frequently face the problem of unavailability of containers and have to transport their produce by roads to ports.
With the HMS scrap import facility, the problem will be sorted out to a large extent, Goyal hoped.
The import of unshredded scrap is allowed only at some designated ports in the country due to security reasons.
There is potential presence of explosive material or harmful acids in the imported unshredded metal scrap and consequential risk to human life and property, he explained.
Therefore, the Centre has laid down six compliance conditions with which the state will be allowed to import unshredded metal scrap directly at its ICD.
Of the six, three conditions will be followed by the state while the rest by Container Corporation of India (CONCOR).
At a meeting in Raipur on Thursday with a delegation of the Union Ministry of Commerce, led by Commerce Secretary Rita Teaotia, the state government gave its consent to comply with the conditions. The CONCOR has also agreed to it.
Now the state government will have to send some communiques to the Director General Foreign Trade (DGFT), which will finally notify the approval, he said.
Teaotia had directed the DGFT official, who was present at yesterday’s meeting, to take early steps in this direction after getting response from the state, Goyal said, while expressing hope to get the permission within 15-20 days.
