• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Ambarish Mukherjee

New Delhi , Dec. 26

EVEN as the issue of transferring the Alloy Steel Plant (ASP) of Steel Authority of India Ltd (SAIL) to the Department of Defence Production has been put in the backburner, the Ministry of Steel is likely to take a big step forward to help it secure more orders from the automobile sector.

The target for such orders would be companies such as General Motors and other automobile manufacturers, official sources said.

According to the last full year's estimate available, the automobile sector consumed 1.64 million tonnes of steel during 2002-03. Of this, around 85 per cent was indigenously produced steel, while the remaining was imported. The Ministry's move is part of the Government's effort to increase the use of domestic steel in automobiles manufactured in the country.

The move, according to Government sources, follows the recommendations made by the Parliamentary Standing Committee attached to the Ministry, which has recommended that the Ministry should step in to help the ailing ASP and act as a facilitator for procuring work order for the plant.

The move also includes a probable fund infusion by SAIL for purchasing certain hi-tech equipment that would bring down production cost in the plant as well as expand the product range offered to customers.

The Ministry is also likely to facilitate work order procurement for the plant from companies such as Bharat Heavy Electricals Ltd, the Indian Railways' wheel and axle plants, various defence units as well as some orders from Tata Steel, sources said.

Article E-Mail :: Comment :: Syndication

Stories in this Section
227 MBA students get placements through Managemantra

Copyright © 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line