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VSP incurred 1,421 crore loss in 2015-16 - Steel ministry

Steel News - Published on Fri, 29 Dec 2017

Times Of India reported that union minister of state for steel Vishnu Deo Sai admitted that the Visakhapatnam Steel Plant reported losses for the first time during the 2015-16 fiscal. Replying to a question by YSRC MP V Vijayasai Reddy in Rajya Sabha, the Union minister said that the steel plant was making profits consecutively since 2002. However, during 2015-16, it had reported a net loss of 1,421 crore after tax.

He attributed the losses to reasons including adverse market conditions, lower net sales realisations of steel products, increase in imported and indigenous coal prices and downturn of global steel industry.

Mr Vishnu Deo Sai further said that steel is now a deregulated sector where imports are allowed in the market. However, the government had taken various remedial measures to safeguard the indigenous steel industry.

Mr Vishnu Deo Sai asserted that "Measures included anti-dumping duties, s afeguard duties and temporary introduction of minimum import price. The government, as a facilitator in the deregulated sector, had also taken initiatives like notified quality control order, notified a policy on the domestically manufactured iron and steel products in government procurement and notified national steel policy 2017. These measures were initiated to encourage the domestic steel sector for their long term growth.”

On non-allotment of captive mine for the Visakhapatnam Steel Plant, the Union minister said that the central government had amended the Mines and Minerals (Development and Regulation) Act 1957 during 2015 empowering the states to lease out the coal mines.

Following this, the states have authority to auction the mines to the bidders, he said and added that the Visakhapatnam Steel Plant had been participating in various auctions conducted across the country for allotment of mines.

Source :

Posted By : Ratan Singh on Fri, 29 Dec 2017
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