Economic Times reported that the Indian government will ensure rising steel prices do not lead to increase in cost of infrastructure projects, since the steel ministry has already notified that preference will be given to locally made steel for procurement by the government and public sector undertakings.
Steel secretary Dr Aruna Sharma, in an interview with ET, said “We will ensure there is no cartelization, but at the same time we do not want prices to fall since it affects the companies. Our objective is to see that Indian infrastructure construction does not become expensive.”
She said mechanisms such as reverse auction would help ensure international price discovery。
Rise in input costs and an improvement in demand, especially from segments like housing, railways and automobiles, led to the firming up of steel prices in the past few months.
A slew of policy measures taken to protect the domestic steel industry from the threat of cheap imports have also started making a positive impact on the industry。
Source : Economic Times