The Steel Ministry today said that 7.1 lakh tonnes of iron and steel will be allocated in the current fiscal to small-scale industries (SSIs) and other government departments.
“Based on the allocation made in the year 2010-11, a quantity of 7.1 lakh tonnes of iron and steel material will be allocated to the State Small Scale Industries Corporations (SSICs) and National Small Industries Corporation (NSIC) for the year 2011-12,” an official said.
SSICs and NSIC allocate iron and steel to SSI units and other government departments from producers such as SAIL, RINL and Tata Steel.
However, corporations can supply a maximum of 30 per cent of their allocated quantity to government agencies.
The official said that the quantity of iron and steel for allocation to SSIs and government agencies could be increased further during the current fiscal, depending upon the demand.
The government provides a Rs 500-550/ tonne handling charge to corporations in order to ensure that SSIs get the raw material at their doorsteps.
The government had allocated 6.99 lakh tonnes of steel in 2008-09, 7.43 lakh tonnes in 2009-10 and 7.66 lakh tonnes till December 31 of the 2010-11 fiscal.
source-http://www.thehindubusinessline.com/industry-and-economy/economy/article2103626.ece
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