JALNA, Maharashtra: Country's steel industry is facing a major challenge with increased steel import from China and the Centre was working towards a solution, Union Minister Nitin Gadkari said here today.
"Domestic steel industry has been facing a crisis, with most of them shutting down, as China is exporting steel to India," he said.
"But we have been looking for ways to tackle this challenge and very soon a solution would be found," the minister added.
Developing infrastructure is great. Building any infra is a big effort, however, an even greater effort is required to sustain it, make it user-friendly and run it efficiently. Only proud people with the right mindset can ensure its success.
The small steel plants in Jalna & elsewhere in Maharashtra are accumulating losses due to low demand and cheaper steel import from China.
These steel plants were established in the 70s. They did very well till about few years back. However if we look into how they prospered & accumulated profits we would be bewildered.
1. Buying raw materials & selling finished products was mostly in cash. No records, no accounting.
2. There were large scale electrical thefts. Somehow the electricity metres never truly recorded power consumption.
3. Excise evasion was rampant. Several factory owners were caught & actions taken against them.
4. Labours were paid far below minimum wages & records were fudged.
5. Raw material came mainly from the railways & from other places and the buying prices were manipulated.
6. Large scale price cartels were formed between the steel manufacturers.
7. The steel units were large environment pollutants & hardly any action was taken against them.
They have existed so far for the above mentioned reasons only. By using unfair means. If the laws were enforced strictly they would have disappeared long ago.
I'm from JALNA . and this story features my town name . proud in a way for my town which is actually famous for its excellent bad roads and scenic garbage display on the streets.
This is a completely wrong assessment. Indian steel industry is in distress due to low domestic demand due to slow growth in infrastructures and construction industries. If investment in new infra and power project pick up the steel industry will sign again. China narrative is not correct and excessive duty on import will harm indian ongoing projects.