Indian steel companies set to get a boost from GAIL's local sourcing policy
Finally, some good news for domestic players who have been badly hit by cheap imports from China.
Prime Minister Narendra Modi’s Make in India mission received a big boost when state-owned GAIL India issued a tender for a Rs 3,000 crore pipeline project giving preference to domestic steel companies, which have been badly hit by cheap imports from China, reports The Economic Times.
The move will pave the way for domestic steel companies to get contracts worth billions of dollars from the government, helping them deleverage their balance sheets and help banks improve their recovery.
Steel Minister Chaudhary Birender Singh was quoted as saying that all tenders from central and state governments along with state firms will give preference to domestic firms in projects worth more than Rs 50 crore.
The decision is aimed at achieving the twin objectives of creating local employment opportunities and providing a level playing field for domestic players.
Companies wanting to invest in India are welcome and the government would invite anyone who is willing to share and transfer technology, the minister said.
Gail India will start with orders worth Rs 1,000 crore initially.