The Indian government has initiated moves to save steel companies distressed by stalled projects and mounting debts, an official at India’s Ministry of Steel said on Friday, July 3.
The official said that the finance ministry will shortly convene a meeting of all stakeholders - steel companies, the Reserve Bank of India (RBI), commercial banks, provincial governments and other ministry representatives from mines and steel - to evolve a package to mitigate the crisis facing the domestic steel industry.
Apart from finding funding for stalled projects of steel companies, the multi-disciplinary approach will also look into possible government initiatives like a reduction in coking coal import duty and another hike in steel import duties by five percent the official said.
Citing the financial stability report published by the RBI last month which indicated that five of the top 10 steel producing companies in India were under severe financial stress, the steel ministry official said that the government will do whatever is necessary within the scope of fiscal prudence to ease distress in the steel sector.