Tuesday, 27 Dec 2011
The Indian Express reported that armed with the CAG’s observations that NMDC’s iron ore exports to Japanese Steel Mills and South Korea was needless in view of growing domestic demand, the Indian steel ministry has decided to ask the union cabinet to reconsider its decision on mandating NMDC to export the mineral.
The official quoted the Chattisgarh chief minister as saying that “The chief minister said if NMDC had not exported ore to these two nations, at least 3 million tonne of additional iron ore would have been available to the state’s ore-starved sponge iron units.”
The official said that “Actually, we also have been opposing these exports from the beginning and had already conveyed our concerns to the commerce ministry, at whose behest the cabinet had okayed NMDC’s continuation of exports (till 2014). We will tell firmly that exports to these two nations are unsustainable at long term prices as it amounted to subsidizing their steel production.”
The official added that “We have decided to approach the Union Cabinet soon to re consider its decision to mandate NMDC to renew its long-term agreements with these two nations, which is bereft of any logic.”
The Comptroller and Auditor General in its recent observations to the steel ministry, had said that NMDC has been mandated to exports iron ore to Japanese steel mills and South Korea but made to overlook the domestic demand for the mineral. The CAG has questioned the mandate.
The move also comes close on the heels of the I-T department who hit out the Navratna company for losing substantial revenues by exporting to Japanese steel mills on long term prices and not through a more viable spot prices. A senior steel ministry official told The Indian Express that “The Income Tax Department has also questioned NMDC’s exports to these two countries on long term prices. It says the PSU has incurred substantial financial losses by not selling the mineral on spot prices.”
(Sourced from www.indianexpress.com)
Showing posts with label raw material availability at a reasonable price. Show all posts
Showing posts with label raw material availability at a reasonable price. Show all posts
Tuesday, December 27, 2011
Monday, August 1, 2011
Why Japanese Steel Companies Are In India
For Japanese steel giants, forging alliances with their Indian counterparts to establish their presence here has become a crucial survival tool
By Prince Mathews Thomas, Business.In
Unknown to many, India had a role to play in Japan’s reconstruction in the years after World War II. Indian iron ore fed Japanese steel mills, the backbone for growth in the country’s construction and auto industries. And, till China’s steel industry took off at the turn of the century, more than three-fourth of iron ore exported from India landed in Japan.
Now, Japanese steel companies are setting up shops in India with increasing frequency. By the end of 2010, the top four steel makers from the Land of the Rising Sun — Nippon Steel, JFE Steel, Sumitomo Metals and Kobe Steel — had made their presence in India official. The New Year started with Kobe Steel forming another joint venture, this time with engineering giant Larsen & Toubro in January. Success in India might play a crucial role in keeping these companies profitable. The India focus is part of Japanese steel mills’ attempt to realign themselves as per industry dynamics post the 2008 economic slowdown. While traditional markets such as North America have been replaced by emerging ones in Asia, supply glut, rising costs and dip in home demand has forced Japanese steel companies to look for solutions. To read whole article visit Business.in
By Prince Mathews Thomas, Business.In
Unknown to many, India had a role to play in Japan’s reconstruction in the years after World War II. Indian iron ore fed Japanese steel mills, the backbone for growth in the country’s construction and auto industries. And, till China’s steel industry took off at the turn of the century, more than three-fourth of iron ore exported from India landed in Japan.
Now, Japanese steel companies are setting up shops in India with increasing frequency. By the end of 2010, the top four steel makers from the Land of the Rising Sun — Nippon Steel, JFE Steel, Sumitomo Metals and Kobe Steel — had made their presence in India official. The New Year started with Kobe Steel forming another joint venture, this time with engineering giant Larsen & Toubro in January. Success in India might play a crucial role in keeping these companies profitable. The India focus is part of Japanese steel mills’ attempt to realign themselves as per industry dynamics post the 2008 economic slowdown. While traditional markets such as North America have been replaced by emerging ones in Asia, supply glut, rising costs and dip in home demand has forced Japanese steel companies to look for solutions. To read whole article visit Business.in
Wednesday, March 9, 2011
Orissa based steel mills meet CM for iron ore solution
Wed, 09 Mar 2011
TNN reported that steel makers in Orissa have demanded the state government should ensure raw material availability at a reasonable price.
As per report, senior persons from several companies, which have set up shop in the state, met Orissa chief minister Mr Naveen Patnaik and sought redress of their grievances.
They complained about problems in accessing iron ore shortage a regulated price and said unless the state government sorted out issues the companies would continue to suffer.
The steel companies urged the state government to facilitate lease of iron ore mines to them in tune with the MoUs signed for establishment of steel mills. They even suggested the state government to ban or restrict export of raw materials to other states and abroad.
The state government should evolve a mechanism to regulate the rate of iron ore and chrome ore, president of All Orissa Steel Federation P L Khandoi, who also heads the Kalinga Nagar Industries Association. Other steelmakers who called on the chief minister included Mr Ratan Jindal of JSL Stainless Limited, Mr Neeraj Singhal of Bhusan Steel and Power Limited, Mr HS Sethy of Essar group and Mr Vishal Agarwal of Visa Steel.
Of the 50 companies that have inked pacts with the state government to establish steel factories in the state, around 30 have already entered into different stages of production. However, most of these companies have been complaining that private mine owners and OMC are selling iron and chrome ore at exorbitant rates, pushing their units to face closure.(sourced :TNN)
Tags : All Orissa Steel Federation, Orissa's iron ore
As per report, senior persons from several companies, which have set up shop in the state, met Orissa chief minister Mr Naveen Patnaik and sought redress of their grievances.
They complained about problems in accessing iron ore shortage a regulated price and said unless the state government sorted out issues the companies would continue to suffer.
The steel companies urged the state government to facilitate lease of iron ore mines to them in tune with the MoUs signed for establishment of steel mills. They even suggested the state government to ban or restrict export of raw materials to other states and abroad.
The state government should evolve a mechanism to regulate the rate of iron ore and chrome ore, president of All Orissa Steel Federation P L Khandoi, who also heads the Kalinga Nagar Industries Association. Other steelmakers who called on the chief minister included Mr Ratan Jindal of JSL Stainless Limited, Mr Neeraj Singhal of Bhusan Steel and Power Limited, Mr HS Sethy of Essar group and Mr Vishal Agarwal of Visa Steel.
Of the 50 companies that have inked pacts with the state government to establish steel factories in the state, around 30 have already entered into different stages of production. However, most of these companies have been complaining that private mine owners and OMC are selling iron and chrome ore at exorbitant rates, pushing their units to face closure.(sourced :TNN)
Tags : All Orissa Steel Federation, Orissa's iron ore
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