SHRI TRIPATHY URGES SPONGE IRON UNITS TO GO
FOR COOPERATIVE COKE WASHERIES
Coal based sponge iron units in the country face
problems to get required quality and quantity of coal, which stands
in the way of their production. The Sponge Iron Manufactures Association
(SIMA) should pursue the units to set up coal washeries fully
dedicated to sponge iron sector by co-operative endeavour, said
the Union Minister for Steel, Shri Braja Kishore Tripathy. He
suggested to start washeries on cost sharing basis for 4-5 units
in groups. The Minister was inaugurating the Annual General Meeting
of the Association, here today. Shri Tripathy appealed to the
companies who have been allocated captive coal mine blocks to
develop the blocks immediately. The Minister inaugurated SIMA
websites www.simaindia.org.
as well as www.spongeironindia.org.
developed and designed by steel RX.
The Minister said that gas based sponge iron units
are also facing problems of restricted supply and rising prices.
The Steel Ministry has taken up the issue with the Minister of
Petroleum and Natural Gas and in the Gas Linkage Committee meetings.
He felt that the problems in the supply of natural gas will be
a continuous one. Therefore the future growth of the industry
should be planned through coal based route. He said that some
coal based sponge iron plants are going to be set up in the States
of Bihar, Jharkhand, West Bengal, Orissa and Chhattisgarh. He
hoped that it would generate additional employment for the local
population and maximise the utilisation of indigenous raw material.
As regards reduction of import duty on non-coking
coal, the Minister said that the Ministry of Finance has been
approached to reduce import duty on non-coking coal to bring it
at par with coking coal. He assured that the Ministry would continue
its efforts to reduce import duty on non-coking coal at least
for metallurgical purposes.
The Minister was happy to know that as per the calculations
of International Institute of Iron and Steel, India has emerged
as the largest sponge iron producer in the world during 2001.
He praised the role of the Indian sponge iron industry for this
remarkable achievement amidst many constraints.
The Chairman,
SIMA Shri M.C.Bagrodia, in his address, drew the attention of
the Minister to the important issues affecting the financial viability
of sponge iron industry. He said that sponge iron industry is
strategically important for the country as it saves valuable foreign
exchange as import substitute for melting scrap. It is an industry
with investment of Rs.5500 crore contributing over Rs.450 crore
per annum by way of taxes to the national exchequer and employing
directly/indirectly 1.25 lakh people.
