The Hindu Business Line : Step up productivity: PM

Salem, Sept. 5 The Prime Minister, Dr Manmohan Singh, has said that inflation control has emerged as major concern particularly after the steep increase in the international prices of petroleum products and primary commodities.

Steps have been taken to moderate the rise in prices and ensure that the inflation control measures “do not hurt” the country’s growth momentum, he said laying the foundation stone for the modernisation and expansion of the Salem Steel Plant here on Friday.

“To ensure non-inflationary growth, we must step up production in all sectors such as agriculture, manufacturing and in services,” he said .

In the 11th Plan Period, the country could expect the economy to grow at around 9 per cent per year, the Prime Minister said and cautioned that this growth should not be inflationary. “Hence we must step up productivity and increase output,” he said. “We have to go a long way in creating the infrastructure essential for modernising India for which the availability of steel products is a key requirement.”

Though the rising prominence of Indian steel industry on the world’s steel landscape mirrors the emergence of our country as a leading economic power, the per capita consumption of steel was “still very low” in comparison to other industrial and industrialising countries. “Yet we are today in sellers’ market and will continue to be. Hence it is all the more imperative that we work hard to augment supply,” he said.

Referring to the increase in steel price , Dr. Singh appealed to steel producers to take all measures to maintain reasonable price stability. “As responsible corporate citizens I am sure that the Indian steel producers will see the wisdom of helping the government to control inflation,” he said.

According to the Steel Authority of India, the modernisation and expansion programme at Salem Steel Plant will make it a fully integrated steel plant. It will have a capacity to produce 1.8 lakh tonnes a year of stainless steel slabs.

With steel making facilities including an electric arc furnace, ladle furnace and refining unit being set up as part of the Rs 1,902 crore project, the plant will no longer have to depend on external sources for slabs. The expansion programme will also increase the plant’s capacity for producing cold rolled stainless steel items from 65,000 tonnes a year to 1.46 lakh tonnes. The project will be implemented through 19 major packages and 20 auxilliary packages; contracts for all the major packages have been concluded. The expansion and modernisation programme is expected to be completed by 2010.

Those who participated in the function included Ms Sonia Gandhi, UPA Chairperson, Union Ministers Mr P. Chidambaram, Mr Ram Vilas Paswan and Mr T.R. Baalu, Tamil Nadu Ministers, Steel Secretary, Mr P.K. Rastogi, and SAIL Chairman, Mr S.K. Roongta.

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