Competition panel may take action against steel firms: Montek
The Planning Commission on Tuesday warned that the Competition Commission could take action against steel producers in case they do not lower prices
By PTI |
NEW DELHI: The Planning Commission on Tuesday warned that the Competition Commission could take action against steel producers in case they do not lower prices, echoing Finance Minister P Chidambaram's assertion that cement and steel firms were behaving in a cartel-like manner.
"It would be in the interest of steel manufacturers if they reduce prices...otherwise the Competition Commission could take action against them," Planning Commission Deputy Chairman Montek Singh Ahluwalia told reporters on the sidelines of a seminar.
Pointing out that steel prices have gone up substantially this year, he said steel manufacturers were exploiting the market by raising the rates to encash the rise in demand.
There is a usual tendency among manufacturers to raise prices whenever there is rise in demand and shortage of supply, but steel manufacturers have raised prices beyond all limits, he said.
The steel prices have gone up by about 50 per cent in the past one year, and contributing to about one-fourth to the wholesale price index based inflation, now hovering over 7 per cent.
Cement prices, however, have not been raised as much as they were last year, Ahluwalia added.
When asked how could a "non-functional" Competition Commission could take action against the cartel of steel producers, he said it could be made functional through government support and could take action against any 'alleged cartel'.
"It would be in the interest of steel manufacturers if they reduce prices...otherwise the Competition Commission could take action against them," Planning Commission Deputy Chairman Montek Singh Ahluwalia told reporters on the sidelines of a seminar.
Pointing out that steel prices have gone up substantially this year, he said steel manufacturers were exploiting the market by raising the rates to encash the rise in demand.
There is a usual tendency among manufacturers to raise prices whenever there is rise in demand and shortage of supply, but steel manufacturers have raised prices beyond all limits, he said.
The steel prices have gone up by about 50 per cent in the past one year, and contributing to about one-fourth to the wholesale price index based inflation, now hovering over 7 per cent.
Cement prices, however, have not been raised as much as they were last year, Ahluwalia added.
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When asked how could a "non-functional" Competition Commission could take action against the cartel of steel producers, he said it could be made functional through government support and could take action against any 'alleged cartel'.
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