NEW DELHI, May 10:The Steel Ministry has fixed the quantity of iron and steel to be allocated to small-scale industries (SSIs) this fiscal at 7.09 lakh tonnes.
“Based on the allocation made in the year 2011-12, a quantity of 7.09 lakh tonnes of iron and steel material will be allocated to SSICs and NSIC for the year 2012-13,” the ministry said in a statement.
State small scale industries corporations (SSICs) and the National Small Industries Corporation (NSIC) allocate iron and steel, which is procured from producers like SAIL, RINL and Tata Steel, to SSIs and other government departments.
In order to ensure that small scale industries obtain these raw materials at reasonable prices, government provides handling charges of Rs 500-550 per tonne to corporations to ensure that they supply the material at the doorsteps of SSI units.
In 2011-12, the ministry had allocated 7.1 lakh tonnes steel to the small scale industries through the corporations, which are entitled to supply a maximum of 30 per cent of their allocated quantity to government agencies.
The government had allocated 6.99 lakh tonnes of steel in 2008-09 to SSI units, 7.43 lakh tonnes in 2009-10 and 7.66 lakh tonnes till December 31 of the 2010-11 fiscal.
However, there is no bar for the small units to procure steel directly from the buyers. But, their benefit of buying steel from the corporations is that they get their material at their doorsteps.
SSICs and NICS are not permitted to sell steel meant for SSIs to traders. In such a case, their payment for handling charges are discontinued and supplies stopped. (PTI)
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