Gadkari calls up Steel & Cement industry to use alternatives, if prices are not decreased

On January 25, worrying about the increasing prices of steel, Nitin Gadkari the Union Minister of Micro, Small and Medium Enterprises (MSME), has warned the steel industry of using alternatives like synthetic fibre bars.

As per a report by Times of India, while speaking at the foundation day of an industry house in Mumbai, the Minister said "the Centre would permit the use of synthetic fibre and composite fibre bars as alternatives to steel products for building roads and bridges."

"Every steel producer has got its own iron ore mines. So, jacking up prices is a type of black marketing and the cement industry is also habitual of this. I am going to settle my issue with them. Now we are planning to allow synthetic fibre in place of steel," said Gadkari, according to the report.

He warned that "Nearly 40 percent of the steel and cement are used in highway construction. If they dont reduce prices, we will formulate alternative policies."

On January 11, the Minister had reproved the Cement and Steel industry and said they were taking advantage from the present situation in the real estate market.

“There is a cartel in the cement and steel industry. Every steel company has its own iron ore mines and there has been no increase in labour and power costs but they are increasing rates,” he had said while interacting with Builders Association of India (BAI), Western Region.

Since the steel prices have stroked Micro, Small and Medium Enterprises (MSME), several industry associations have urged the government to prohibit the export of steel for at least six months.

Chamber of Industrial and Commercial Undertakings (CICU) stated that "although these factories are earning foreign exchange by exporting steel, it is hindering the export of finished products which captivate more value addition. Steel price per Kg ranges between 50-60 per kg, whilst products completely manufactured like Auto parts, Hand Tools, Bicycle Parts, Sewing Machine Parts sold at Rs. 200 to Rs. 350 per Kg and it provides employment of 110 Million in MSME in India."

In November last year, the Karnataka Small Scale Industries Association (KASSIA) has also urged the government to financially support the steel prices or impose price control.

The price of steel has been increased by 35-40 per cent in the last 3 months, as well as those of zinc and aluminium, which puts the MSMEs in a great risk of loss, when they are barely able to recover from the impact of the pandemic.

"The touted recovery is in fact seriously impaired by this sudden development," had said KASSIA.

The same way, the Indian Steel Association (ISA) had demanded a ban on iron ore export for six months, through a letter sent to Prime Minister Narendra Modi.