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

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STEEL-Murky Aftermath of Decontrol

Murky Aftermath of Decontrol S V Char ADMINISTERED prices, government has discovered, permits distortions and serves the interests of neither producers nor consumers. It is only middle men who scoop up market premiums who. thrive on administered prices. Administered prices in such a situation, moreover, could show peculiarities such as that billets were sold at Rs 3,700 whereas downstream products such as structural, angles, channels and others, were sold at Rs 3,200. In the aftermath of price decontrol, it is thus possible for producers to fund as much as Rs 700 per tonne under the Steel Development Fund, and even of this public sector units could deduct Rs 200 and private sector units Rs 100 towards cost escalations. Tine Steel Development Fund can now provide for replacement and modernisation. Decontrol can also encourage greater production, and reduce imports, of items such as: plates, structural pig iron, and railway materials, the administered prices of which fetched a low market value.

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