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The country’s public and private steel companies have identified a participative funding formula for the proposed Steel Research and Technology Mission of India (SRTMI), which will spearhead research and development (R&D) activities in the industry.
Under this formula, the steelmakers would bring in a seed capital equivalent of ₹25 for every tonne of crude steel produced in 2013-14, or ₹5 crore, whichever is higher.
The companies are soon to finalise the contributions through respective board approvals. The Government wants to establish the SRTMI as a registered society with an initial corpus of ₹200 crore within the next three months, say steel ministry sources, who did not want to be named.
The entity will invest in R&D for the steel sector, and aims to raise steelmakers’ combined investment level of 0.2-0.3 per cent of the turnover to the international benchmark of 1-2 per cent.
According to estimates, about ₹130 crore could be pooled in by the top integrated steel makers, while the Steel Ministry has made a commitment of providing ₹100 crore from the Steel Development Fund.
At a recent meeting, it has also been decided that all recurring expenditure and cost of specific projects will be borne by industry partners.
The SRTMI will function as an autonomous body governed by a board comprising CEOs of steel companies and other stakeholders.
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