The Telegraph
Since 1st March, 1999
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Govt not to rein in steel price swings

New Delhi, Sept. 30: The government does not have any plans of regulating the steel prices or cut duty on steel imports, said steel secretary V. K. Duggal.

“The current price trend doesn’t merit any such move as average steel prices are at Rs 19,000 per tonne,” he said.

The steel sector has picked up since last year on the back of higher demand, which have fuelled prices. Especially in the last two months the sector has registered hectic activity.

Earlier, finance minister Jaswant Singh had hinted that the government may cut duty on imported steel to ease prices for users.

But, the rise in prices has helped steel companies to improve revenues and restructure financial debts. Recently, financial institutions have restructured debt to steel firms worth nearly Rs 20,000 crore to help them repay.

“I cannot lose a core sector...the country has invested a lot in steel,” Singh said when asked if the government would regulate steel prices.

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