Punjab steel industry on 4-day strike

“But after the Central excise department assured us to look into our problems,we then decided to shut down our units for four days only as mark of our protest,” Mandi Gobindgarh Induction Furnace Association President Mohinder Gupta said.

The induction furnaces in Ludhiana have also supported the strike and decided to shut down units for two days.

The call of induction furnace owners has got the support of Steel Chamber of Commerce and Industry,Bhav Nagar (Gujarat) Steel Association and Import and Export Association.

The industry had accused Central Excise department of conducting “unnecessary” checks of ship breaking material consignment coming from Bhav Nagar in Gujarat and declaring the material as unfit for use in induction furnaces.

The steel makers alleged that the department was not allowing them to sell ship breaking material to traders and manufacturers on unwarranted charges. Steel producers also alleged that the department pressurised the industry to collect excise duty on scrap material received from supplier.

“We face problems in collecting excise duty as sometimes suppliers like bicycle makers do not want to pay duty on sale of scrap then what can we do,” a Ludhiana-based induction furnace owner said.

However,Central Excise Commissioner S J Singh had said that the department was taking steps under the law.

“There is no intention of the department to harass any one. We are taking steps as per law … there been some past arrears (due towards industry),some of people (industry) are not available,” he had said.

Punjab is a major manufacturer of secondary steel in the country and manufacturing capacities are concentrated in Mandi Gobindgarh,Khanna and Ludhiana.