Iron & steel industry pins hope on budget announcements – ET Auto

baua


‘With around 100 mills facing operational difficulties and another 100 barely breaking even, we, the industrialists, are looking towards the govt for support and strategic interventions.’

With the beginning of Punjab assembly’s budget session, optimism has surged in the Mandi Gobindgarh and Fatehgarh Sahib’s iron and steel industry, which has been anticipating positive announcements and relief measures. The industrial community, particularly small-scale enterprises, eagerly hopes for a revival after enduring “neglect and challenges” in the recent years.

One of the pressing issues highlighted by industrialists is the escalating power tariff. The current govnt’s imposition of surcharges has led to a significant increase in power costs, with industrialists facing a rise of INR 1 per unit. This hike, compared to the previous tariff fixed at INR 5 per unit, has exacerbated financial strains on the sector.

Furthermore, the steel rolling mills in Mandi Gobindgarh have been grappling with financial instability amidst fierce intra-state competition. The mandatory shift from coal to piped natural gas for these mills, unlike their Ludhiana counterparts, has created a disparity, affecting competitiveness and profitability.

Raj Jindal, senior vice-president of All India Steel Rolling Mill Association, highlighted the plight of the industry, and claimed that out of about 300 rolling mills, a significant portion operates at a loss, further underscoring the sector’s challenges.

“With around 100 mills facing operational difficulties and another 100 barely breaking even, we, the industrialists, are looking towards the govt for support and strategic interventions,” Jindal added.

Dinesh Gupta, chairperson of CII Mandi Gobindgarh chapter, said, “There has been a rise in power cost after the govt increased the surcharge, which has hit the industry. In another setback, the govt has imposed 0.25% revenue charges on bank limits. Due to ongoing farmers’ agitation, there has been uncertainty among the industrialists outside the state.”

  • Published On Mar 2, 2024 at 12:02 PM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Download ETAuto App

  • Get Realtime updates
  • Save your favourite articles


Scan to download App


Ashok Leyland, the flagship company of the Hinduja Group has signed an MoU (Memorandum of…

Kolkata-based Ramkrishna Forgings is a manufacturer and supplier of closed-die forgings of carbon and alloy…

Earlier, in February, the government allowed foreign direct investment (FDI) under an automatic route in…