Govt eases steel usage curb for highway construction; allows using steel produced by secondary steelmakers
For the development of highways, the Modi government has allowed the usage of steel made by secondary steel manufacturers. Earlier, in road construction, road developers were needed to use steel made by the first steel producers solely. The choice has been taken within the wake of inflation of steel equipped by primary steelmakers, per a PTI report. Union Minister Gadkari has been vocal regarding this as major steel corporations were on a spree of worth hiking for the previous few months, primarily taking cues from their international peers. Whereas the Road Transport and Highways Minister took the touch on PM Modi, seeking his intervention, steel corporations even the worth hike to inflation of ore.
The minister’s considerations were partially self-addressed within the Union allow 2021-22, during which import of steel was created easier by lowering duty on a variety of things and granting duty exemption on import of steel scrap, used by secondary steelmakers. As per Indian Ratings, domestic hot-rolled coil (HRC) costs (Mumbai 2.5 mm-8 mm) inched up 45% year-on-year and 3% month-on-month to Rs 57,000 per weight unit in period 2021. In 2019-20, 103 million tonnes of finished steel was made by India, out of that around 45% was factory-made by the secondary steel producers.