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Indian Iron
The problem of rising costs has been dogging steel producers. They have been asking for a rise in the retention price to neutralise higher costs. Devaluation has further accentuated the problem in a situation in which the Government appears to be reluctant to take any step which is likely to raise the selling price of steel and impart a boost to prices all-round.
The problem of rising costs has been dogging steel producers. They have been asking for a rise in the retention price to neutralise higher costs. Devaluation has further accentuated the problem in a situation in which the Government appears to be reluctant to take any step which is likely to raise the selling price of steel and impart a boost to prices all-round.
The way out of the dilemma, as suggested by the steel producers in the private sector, is a rise in the retention price with a corresponding cut in the excise duty on steel. Sir Biren Mookherjee, Chairman of Indian Iron and Steel in his annual statement to shareholders, has worked out the quantitative implications of his suggestion. He wants the Government to slash excise duty by about Rs 50 a tonne with a view to "increasing retained earnings without a corresponding increase in selling prices to the consumer".
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