Steel industry owes Rs 3,00,000 crore to banks



New Delhi : The steel business has extraordinary credits of around Rs three lakh crore in different banks, therefore making the segment one of the biggest givers to non-performing resources (NPA) in the nation.

Steel Minister Birender Singh said in Lok Sabha that endeavors are on by banks and Reserve Bank of India to rebuild the credits given to the steel business so that the advances could be recouped.

"Yes, beyond any doubt the steel business has a remarkable credit of around Rs 3,00,000 crore," he said while reacting to Congress part Jyotiraditya Scindia's remark that the steel division was one of the biggest givers to NPA in the nation.

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Communicating worry over the overall circumstance in the steel business, Singh said the administration was trying endeavors to restore the business so that the steel organizations reimburse the credits.

The Minister said amid Question Hour that China has created 25 to 30 for each penny more steel than its household utilization and the nation has been attempting to fare steel to India where its interest is developing.

With Chinese steel in the business sector, the costs have fallen, bringing about the residential steel makers enduring substantial misfortunes.

To check this circumstance, the legislature has forced Minimum Import Price (MIP) for steel with impact from February which helped the cost again going upward in the last 2-3 months, Singh said.

"Nonetheless, the worldwide steel value keeps on being low, which involves concern," he said.

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The Minister said the Indian steel industry was right now going through an extreme downturn, because of worldwide overcapacity, bringing about significant steel delivering nations offering their items in India at costs frequently lower than their expense of creation.

"Therefore, residential makers have needed to essentially lessen costs, along these lines disintegrating their net revenues," he said.

Representations have been gotten from Indian Chamber of Commerce and Indian Steel Association to consider working out a reasonable bundle to bolster steel industry, he said.