Steel industry welcomes proposals

The steel industry on the whole has expressed its satisfaction over the Union Budget stating that major push to manufacturing and infrastructure will raise the demand in the domestic market.

The steel demand has remained subdued due to slump in infrastructure and manufacturing sector.

RINL Chairman-cum-Managing Director P. Madhusudan described the budget as growth-friendly. He said significant allocations had been made towards several infrastructure projects in the country. Rs 37,850 crore allocation to NHAI would pave way for improving road networks, thereby increase steel consumption mainly the long products.

Mr. Madhusudan also welcomed the several industry driven moves of Finance Minister like developing airports in tier II and III cities, Rs 100 crore for rural entrepreneurship programme, revival of SEZs, Rs10,000-crore venture capital fund to attract new entrepreneurs, allowing manufacturing units to sell their products through retail and e-commerce which will give major boost to e-economy. “All these moves will certainly help in reviving both the infra and manufacturing sectors leading to more steel consumption,” he said.

RINL, the corporate entity of Visakhapatnam Steel Plant, would be benefited by Rs. 90 crore due to imposition of customs duty on metallurgical coal and energy cess.

Shift in focus

Director of Sarda Metals & Alloys Ltd Neeraj Sarda told The Hindu that in a welcome shift, more focus was being accorded to infrastructure, logistics and infrastructure sectors raising the per capita consumption of steel.

Instead of giving importance to populist schemes, the government had kept in eye its long-term goal to give a stimulus to development. He said even power could be ensure 24x7 once the transmission corridor was developed.

Steel Exchange India Ltd Executive Director K.V. Bhaskar said the budget was positive and long-term-oriented. “It is a visionary budget because the long-term needs of steel and other vital sectors have been kept in mind to fuel growth,” he said and hoped that special package promised for AP would give a fillip to investments.