Steel cos making disproportionate profits: Paswan
Financial Express

Brushing aside criticism for forcing steel majors to reduce prices of the alloy, the government has justified its action saying it had become necessary as the Companies were making ‘disproportionate’ profits.
"It was absolutely necessary as the firms were making disproportionate profits," Union Steel Minister Ram Vilas Paswan said, justifying his intervention even as the steel sector has been deregulated long ago. In an interview, Paswan stressed the increasing prices of steel were impacting consumers and the government had to fulfill its responsibility.
"You see, if prices are rising, people look forward to government only (and not the industry)," he said, adding that the reduction from the side of steel Companies was ‘voluntary’.

"The steel Companies are earning huge profits. Only some part of their gains are affected by this move nothing else happened", the Minister said. "They (steel Companies) told me that the costs of raw material has increased. But in reality, they had increased their margins disproportionately. We only intervene when it becomes absolutely necessary," Paswan said citing previous instances of government's interventions.

Last week, Paswan's Ministry had successfully got the industry to roll back the prices of steel that have risen sharply in the recent months, by Rs 500-1,000 per ton, inviting criticism from economists and sections of media.
The industry, on its part, has cited escalating costs of the raw material such as iron ore, coking coal, coke and scrap for hiking the prices.
Concerned over the situation, the government had also expressed its ‘displeasure’ to the steel Companies, Paswan said, while criticising them for raising the prices by ‘15 per cent in just three months’.

The Minister admitted that the demand for the alloy had gone up in the recent years as the "production rate at seven per cent was lower than the consumption rate which was at 13 per cent."
Dismissing the argument that the price situation would have been better off had it been left to market forces, Paswan said, "if market forces are to determine everything, then why have the duty on the imports from international Markets as well? If you talk of an absolutely free market, then let us not even have taxes on Chinese goods and allow them free entry." He also insisted that the move would have ‘no impact’ on investments in the sector. Besides, Paswan said that the issue was settled with MP Naveen Jindal, who represented the steel Companies during the meeting.

Paswan justifies forcing industry to roll-back steel prices
Financial Express

Brushing aside criticism for forcing steel majors to reduce prices of the alloy, the government has justified its action saying it had become necessary as the companies were making "disproportionate" profits.
"It was absolutely necessary as the firms were making disproportionate profits," Union Steel Minister Ram Vilas Paswan said, justifying his intervention even as the steel sector has been deregulated long ago.
In an interview to PTI, Paswan stressed the increasing prices of steel were impacting consumers and the government had to fulfil its responsibility.
"You see, if prices are rising, people look forward to government only (and not the industry)," he said, adding that the reduction from the side of steel companies was "voluntary".
"The steel companies are earning huge profits. Only some part of their gains are affected by this move... nothing else happened", the Minister said.
"They (steel companies) told me that the costs of raw material has increased. But in reality, they had increased their margins disproportionately. We only intervene when it becomes absolutely necessary," Paswan said citing previous instances of government's interventions.
Last week, Paswan's ministry had successfully got the industry to roll back the prices of steel that have risen sharply in the recent months, by Rs 500-1,000 per ton, inviting criticism from economists and sections of media.

Government asked to benchmark ore prices
The Hindu

The Indian Chamber of Commerce on Friday urged the Government to direct public sector mining companies to prioritise the supply of iron ore to domestic steel producers at a reasonable price under long-term contracts.
“We are not asking for a regulator in pricing of iron ore by public sector mining companies. But, we want the Government to benchmark ore prices in the long-term interest of steelmakers,” Chamber Vice-President Vishambhar Saran said here at a conference.
Mr. Saran noted that the Government should direct state-owned mining companies to provide the basic raw material to domestic steel producers on long-term contracts. The pricing of the ore, he said, could be linked to the cost of mining with an annual cost escalation factored in so as to ensure a reasonable return on their investments.

To put a check on overseas sales, Mr. Saran sought an immediate ban on the export of iron ore with ferrous content above 62 per cent. He also suggested imposition of a 25 per cent tax on ore exports on ad valorem basis in the interim period.
Alongside, as a measure to bring the steel majors on track, the ICC Vice-President pointed out that the existing companies which already having captive mining leases should not be granted any more fresh leases merely on the basis on their proposed expansion plans because some of these companies have continued to hold on to their mining leases for years without undertaking any significant mining operations.

NHAI’s six-lane project hits the road at last
Indian Express

With the awarding of a mere 148 km under National Highways Development Programme V — against the target of 1,500 km — the ambitious project to six lane 6,500 km of national highways is finally taking off. The National Highways Authority of Indiahas awarded another five NHDP V BOT projects — based on model concessionaire agreement (MCA) — across 882 km, which will cost around Rs 10,912 crore. It has also introduced a new revenue sharing model on NHDP V, as per which within 180 days of signing of an agreement the concessionaire widening the highway will start collecting toll and share the revenue with the NHAI.

With these projects, the NHAI has successfully switched over from the negative grant model to the revenue sharing model. In fact, none of the bidders who bagged the projects asked for a negative grant from the NHAI. Instead, they quoted for revenue sharing with the NHAI — ranging from 2 to 48.06 per cent. “Along the Delhi-Jaipur section, the NHAI will have a share of 48 per cent,” said Brahm Dutt, secretary of Ministry of Shipping, Road Transport & Highways, on Friday.
NHDP V is being implemented on already four-laned stretches, like the Golden Quadrilateral and the North-South corridor. These are already being tolled. The new concessionaire, which will six lane these, will take over the tolling process. However, the toll rates will not be increased.

NHAI member, technical, A V Sinha clarified that the right to toll given to the concessionaire, within 180 days when he achieves financial closure, will not compromise on project implementation. “While the NHAI is collecting toll in these sections as of now, once the concessionaire takes over he will take over toll collection as well and share it with the NHAI. There are adequate safeguards in the agreement to ensure that in case the concessionaire defaults, the toll will not be credited to his escrow account. So, at no point are we compromising on project performace in any way.”

Of the 6,500 km to be six-laned under NHDP V, 5,700 km is on GQ and 800 km on other sections. The five NHDP projects awarded under the new MCA are the 43.4 km-long section between Chennai and Tada on NH 5, 225.60 km along Gurgaon-Kotputli section on NH 8, 239 km along Surat-Dahisar section on NH 8, 82.5 km on NH 5 between Chilakaluripet and Vijayawada, 291 km between Panipat and Jalandhar on NH 1. With these, the total length so far awarded under NHDP V is 1,030 km.

These will be designed as partially access-controlled highways, with service lanes on either side and crossover facility every 2-3 km, besides flyovers or grade separators with exit and entry points at major intersections. “The project awarding is good news for the NHAI as four out of the five attracted high FDI — ranging from 10 to 51 per cent from firms like Emirates Trading Agency, Deutsche Bank, IJM Corporation and Isolux Corsan,” added Dutt.