Steel industry body approaches govt, banks for financial pkg

ISA, representing the over USD 100 billion steel industry, met Steel Ministry official last month and sought a comprehensive support package on the lines of the ones extended to textiles and sugar sectors.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
Real-time Stock quotes, portfolio, LIVE TV and more.
GeStepAhead Travelcafe SME Special
moneycontrol.com

sme special

Associate Sponsor

Home » News » Economy

Feb 17, 2016, 11.52 AM | Source: PTI

Steel industry body approaches govt, banks for financial pkg

ISA, representing the over USD 100 billion steel industry, met Steel Ministry official last month and sought a comprehensive support package on the lines of the ones extended to textiles and sugar sectors.

Like this story, share it with millions of investors on M3

Steel industry body approaches govt, banks for financial pkg

ISA, representing the over USD 100 billion steel industry, met Steel Ministry official last month and sought a comprehensive support package on the lines of the ones extended to textiles and sugar sectors.

Post Your Comments

Share Cancel

Steel industry body approaches govt, banks for financial pkg
Indian Steel Association (ISA) has urged the government and banks for a financial package, including loan restructuring, to counter the crisis arising from cheap imports and subdued prices.

ISA, representing the over USD 100 billion steel industry, met Steel Ministry official last month and sought a comprehensive support package on the lines of the ones extended to textiles and sugar sectors.

The industry body is also in talks with the Indian Banks Association (IBA) for the package.

"A comprehensive support system involving participation of stakeholders is urgently required to ensure steel sector's survival," ISA Secretary General Sanak Mishra told PTI.

ISA has requested the government as well as banks for an immediate dispensation in the form of a special package for the industry to tide over the current crisis, he added.

The package will be in two parts - moratorium on payment of interest and principle amount and segregation of Sustainable and Balance debt, he said.

The moratorium will be a short-term measure to ensure continued operations, while various remedial measures are put into place.

Sustainable Debt will consist of long-term debt and working capital required to run the business at optimum capacity level. Balance Debt will be repaid over an extended period of time by converting it into Redeemable Preference Shares with a nominal rate of about 0.01 percent.

According to ISA, segregating debt into Sustainable and Balance will help the industry manage its financial burden.

Welcoming the efforts of government to safeguard the domestic steel industry, Mishra said many feel that the recently-imposed Minimum Import Price (MIP) will solve the woes, but it is not the case.

"This will bring some relief, but one must note that it is for six months and does not include some products such as alloy steel, etc," he added.

Earlier this month, the government imposed MIP on 173 steel products ranging between USD 341 to USD 752 per tonne to provide relief to domestic steel producers against cheap in-bound shipments.

Besides, ISA said provisional Safeguard Duty of 20 percent imposed in September last has been ineffective as steel prices have dropped over USD 100 per tonne since then, negating the benefits of the levy.

Ads by Google

Buy, Hold, Sell ? Hear it first on M3
Steel industry body approaches govt, banks for financial pkg

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login