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India steel ministry urges states to help steel plants

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Christian Fernsby ▼ | March 25, 2020
India’s steel ministry has urged state governments to issue suitable instructions to allow un-restricted inter-state movement of trucks carrying raw materials and finished steel in order to maintain an efficient supply chain.
Binoy Kumar
Steel Secretary   Binoy Kumar
Steel Secretary Binoy Kumar wrote to state chief secretaries arguing against imposition of any restrictions on the operation of steel plants, entry-exit of workers engaged in these plants, movement of raw materials like iron ore, coal, limestone, dolomite, ferroalloys, scrap, sponge iron, and intermediate or finished products to and from such plants.

Topics: India steel plant

Considering the fact that mining activities are integral to the operation of steel plants, it is also requested that no restrictions should be placed on the operation of mines of iron ore, coking coal, thermal coal, limestone, dolomite, manganese, chromite, etc as well as operation of sponge iron, ferro alloys, iron ore pellet plants etc which will supply raw materials for steel making.”

Steel plants referred to in the letter include both integrated steel plants as well as induction furnace or electric arc furnace-based steel units.

Movement of the raw material and finished products, as requested by the secretary, should be allowed passage both through rail and road as well as through waterways or sea routes.

The steel secretary has banked on the Section 2(1) (a) (xii) of the Esma, 1981 which lists ‘any service in any establishment or undertaking detailing with the production, supply or distribution of coal, power, steel or fertilisers’ as an ‘essential service’.