The minister made his remarks to the press after having addressed the Steel Consumers Council in New Delhi. At that meeting, secondary steel producers had demanded the abolition of the five percent import duty on scrap, citing the existing four percent CVD on scrap which they said reduces their competitiveness.
Mr. Paswan also stated that the countrywide inventories of SAIL and Rashtriya Ispat Nigam Limited (RINL) would be reviewed for the purpose of ensuring steel availability. In addition, he stated that SAIL has already formed a 1,100-outlet dealership network across 602 districts and that its products are available at district headquarters at the same price as in the state capitals.
He went on to add that SAIL has launched an expansion program of over US$119.8 million, which aims at increasing the plant's capacity to 26.18 million tons by 2010. Meanwhile, RINL's modernization and expansion program will cost US$22 million and is foreseen to be competed by 2010 as well.
Mr. Paswan also declared that a price monitoring committee including officials, steel producers and consumers has been established in order to follow up price movements and to develop projects to avoid price volatility in steel price trends.