Moneycontrol India :: News :: Govt initiaties probe into cement, steel cartels: FM :: :: Economy :: Finance Minister,inflation,cement,steel cartels,Manmohan Singh ,PM
Govt initiaties probe into cement, steel cartels: FM
said the government is considering more fiscal steps to curb inflation, reports CNBC-TV18, quoting Newswire18. “We are waiting to see the steps RBI will take in its policy meet on April 29. The government has have initiated a probe into cement, and steel cartels as some of these companies are acting as cartels."
Chidambaram said, “We have taken a set of fiscal measures and some more fiscal measures are being contemplated. As far as monetary measures are concerned, the day after the debate concluded, the Reserve Bank increased the CRR by 50 bps in two installments and that has been widely published in the newspapers. The monetary policy review is coming up on the April 29 and one would have to wait to see what further steps the Reserve Bank takes. As far as cartels are concerned, it is my view that cement manufacturers and to some extent steel manufacturers are behaving like cartels. Some enquiries have been commenced by the MRTP, we are looking at the legal and administrative provisions that are available to government. The Ministry of Industry and Ministry of Steel are also talking to the steel producers and the cement producers. When steps are taken, certainly we will take the house into confidence and report the steps to the house.”
, Managing Director, Tata Steel said that, the only sure way to deal with the rising steel prices, is to raise capacity. He said that the steel industry in India needs to have captive raw material and would require the government support for the steel industry to add capacity.
Tata steel will add 24 million tonnes of new capacity soon and has also set a target of achieving 10 million tones in Jamshedpur by 2010, Muthuraman said. Muthuraman further added that Tata Steel will add 6million tones in Orissa, 6 million tones in Chattisgarh and 12 million tones in Jharkhand.
Muthuraman said that the steel companies are facing cost pressures because the iron ore prices have shot up to very high levels. He also said that, Tata Steel was trying to exercise restraint to the best extent possible. Tata steel is scouting for iron ore mines in west Africa, Brazil, added Muthuraman.
The , said, “Without industrialization, one cannot provide new opportunities for employment for those who are no longer able to earn a living out of agriculture. Industrialization provides a way out of the process of agrarian change and agricultural development in lower populated economy such as ours. Over the past twenty-five years the share of agricultural national income has come down due to the rapid growth of new industries and the services economy.”
Montek Singh Ahluwahlia, Deputy Chairman of the Planning Commission has warned that the Competition Commission, with government support, could take action against steel producers if they continue to exploit strong demand by keeping prices high and act like a cartel.
Meanwhile, following the PM's request SAIL has agreed to hold steel prices for the next 2-3 months.
- Jul 09, 10:05
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