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Government must ensure raw material supply to performing steel makers – Mr Naveen Jindal

2018-01-09

PTI reported that Jindal Steel and Power Ltd (JSPL) chairman Mr Naveen Jindal told that the government should ensure that performing steel assets do not face any shortage of raw material. He told PTI “You see only three private major steel companies have not embarrassed their investors, the rest have been pulled to the NCLT. The government must give priority in providing raw material to those steel companies that are not facing insolvency proceedings and regularly paying interest on debts.”

He added that insolvent firms do not pay any interest, nor are they able to service their debt and such insolvent firms can even sell their items at lower rates.

Mr Jindal also said “We are taking up this matter with the government that those companies which are giving the interest regularly must get uninterrupted supply of raw materials. I would say other ministries also, whether it is coal, railways, they must support them (performing companies) by meeting their requirement. If you don’t meet the requirement if there a shortage then government must supply raw materials on priority basis.”

He further said that rise in iron prices is very unfortunate. He told “They have gone up heavily in last two-three months and due to it we have also raised rates. There wasn’t any other way by which this rise could have been evaded. We were bound to pass on the burden. We have to service the debt also. We are bound to raise the rates.”

Source : PTI