ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Public Sector- Flash in the Pan

by the product in several ways without formal government approval. Consumers were told in 1974 that those who did not buy rake loads (20 to 30 wagons) of material from one plant, would have to take delivery of their requirements from stockyards run by the producers. In order to cover the distribution costs of the stockyards, traditionally the ex-stockyard prices allowed for a. margin of Rs 50 to Rs 75 per tonne over the JPG prices. Earlier every consumer was entitled to buying steel in wagon loads at what was known as JPG prices. The change in the distribution procedure automatically increased the price of steel to the customers and increased the revenues to the main producers. Having tasted success without having to go and justify the price increase to the government at the highest level, the producers, at the initiative of SAIL, increased the stockyard margins by varying amounts Rs 200 to Rs 1,000 for different . In addition, extras for different sizes were increased without any justification. In some cases the size or section extra was increased from Rs 17 per tonne to Rs 200. For example, medium angles which cost about Rs 1,300 per tonne in early 1974 had increased to nearly Rs 2,000 by mid- 1977 and plates had gone up from about Rs 1,400 to about Rs 2,060.

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