The Hindu Business Line : Curbs on scrap imports put steel makers in a spot

THE restrictions imposed by the Union Government on imported scrap materials have put the steel manufacturers in the State in a spot in view of the non-availability of iron scraps required for production.

The Government control comes in the wake of a recent mishap in one of steel manufacturing units at Ghaziabad while handling imported scraps. Taking serious note of the issue, the Government had imposed further control in the matter of import scraps by ordering 100 per cent inspection by the Customs authorities on un-shredded and un-compacted materials before it is removed from the port area.

According to the association, manufacturing of steel involves melting of scrap iron in a furnace for manufacturing of ingots and thereafter conversion of the same into iron rods and bars. The raw material is, therefore, iron and steel scrap. As scrap is not readily available in the country, most of the units are importing it from other countries.

Mr K. Pankajakshan, General Secretary of the association, said that the detention of scrap in the port following the Government's decision had forced the manufacturers to pay demurrages to Kochi Port as well as shipping lines.

In this circumstance, the cost to the industries due to restrictions would get more than doubled if the consignment has not been cleared immediately, he said.

The association also approached the Kerala High Court seeking a direction to permit them to take the containers out from the Kochi Port premises for de-stuffing as it is pointed out that around 1,000 containers laden with imported scraps is lying in the wharf awaiting Customs clearance. Earlier, he said the Customs authorities allowed to clear scraps on the condition that the seals of the containers should be opened in the presence of the Central Excise office ranges concerned.

The association demanded that the status quo should be maintained while dealing with imported scraps irrespective of the restrictions.

The port officials, when contacted, also admitted about containers awaiting customs clearance. Since, the Customs authorities are demanding de-stuffing of boxes inside the wharves itself, the officials pointed out that it is physically impossible to check it by hand.

Moreover, lack of facilities in the container terminal will also affect the entire cargo examination and the stranded scrap containers were causing operational difficulties in the already congested terminal, the officials added.