Steel: House panel blasts cos, ministry

The 44-member committee, with representation from both the Houses, was headed by P.C. Alexander. The committee looked into the problems faced by small scale industries in procurement of steel.

The committee has recommended assured supply of steel to the small scale units at reasonable prices. ‘‘Although the committee appreciates that in an open economy the prices are determined by the market forces, the need for introducing appropriate mechanism for keeping the prices stable for a given period should receive the immediate attention of the government.’’

The committee has suggested a ‘‘triggered price mechanism’’ as ‘‘a short-term measure’’ to overcome the present crisis faced by SSIs. Under this mechanism, international price of HR coil should be linked with duty: if the price exceeds $400 per tonne, duty can be reduced.

Another recommendation pertains to the establishment of a coordination committee, comprising representatives from the ministries of steel and SSIs and from the producers and users of steel. This committee ‘‘may look at the prices although not with the intention to regulate the prices but keep an eye on the prices. This committee may also assess the requirement of steel by the SSI sector and ensure timely supply’’.