Govt asks SAIL to hold prices

NEW DELHI: Government has asked state-run steel maker SAIL to hold its price line beyond the self- moratorium of three months, which ends on August 7, as well as persuade its counterparts in the private sector to follow suit in "national interest".

"We have asked SAIL not only to hold the price line after expiry of the three-month self-moratorium but also take the lead in persuading private producers to do the same," Steel Minister Ram Vilas Paswan told reporters here.

The minister said, "There was no point for the companies to increase prices if they have been able to make 15 to 20 per cent profit despite the increase in raw material costs and holding the price line for about three months."

Asked about the possible measures that the government could take if steel producers increase the rates, all Paswan said was "let prices first go up and we would see".

The minister said the government would not like the industry to close down due to shrinking margins and increasing cost of production, but would see that the prices do not shoot up disproportionately.

"As soon as we come to know that the industry is bearing loss, we will take a sympathetic approach. Our doors are always open for the industry to discuss the issues. But at the same time, we would monitor the prices," he said.

Endorsing the steel industry's concerns over rising input cost, Paswan however said the government cannot take chances with prices shooting up yet again and adding to inflation, which is ruling at a 13-year high of 11.89 per cent.

"We do not want to be blamed that steel is yet again adding to the inflation. In the national interest, the companies should refrain from increasing prices for the time being," he said.