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ArcelorMittal, SAIL may finally seal Rs 5000-crore JV

KOLKATA: ArcelorMittal on Wednesday said it has agreed to make concessions to Steel Authority of India (SAIL) on technology transfer to iron out contentious issues in their proposed Rs 5,000­crore automotive steel joint venture. The announcement comes a day after steel minister Chaudhary Birender Singh said the global steel major and SAIL are in ‘final stages’ of formalising the deal. The two companies are believed to be close to ironing out key commercial terms to close the deal, including non­compete and exit clauses as well as finalising policy on arbitration, agency reports said, quoting sources. Responding to ET, an ArcelorMittal spokesperson said: “Our discussions with SAIL continue to make progress, with both parties making significant efforts towards reaching a final agreement. Progressing our partnership to a formal joint venture stage remains the objective, but given the confidential nature of this discussion, we will be making no more comments at this time.

When contacted a SAIL official, who did not wish to be named, said: “A joint task force formed to work out the partnership is moving ahead with its job. A feasibility report is now being prepared as part of the preparatory work on the deal”

ArcelorMittal, SAIL may finally seal Rs 5000-crore JV

KOLKATA: ArcelorMittal on Wednesday said it has agreed to make concessions to Steel Authority of India (SAIL) on technology transfer to iron out contentious issues in their proposed Rs 5,000­crore automotive steel joint venture. The announcement comes a day after steel minister Chaudhary Birender Singh said the global steel major and SAIL are in ‘final stages’ of formalising the deal. The two companies are believed to be close to ironing out key commercial terms to close the deal, including non­compete and exit clauses as well as finalising policy on arbitration, agency reports said, quoting sources. Responding to ET, an ArcelorMittal spokesperson said: “Our discussions with SAIL continue to make progress, with both parties making significant efforts towards reaching a final agreement. Progressing our partnership to a formal joint venture stage remains the objective, but given the confidential nature of these discussions we will be making no further comment at this time.” When contacted a SAIL official, who did not wish to be named, said: “A joint task force formed to work out the partnership is moving ahead with its job. A feasibility report is now being prepared as part of the preparatory work on the deal.”

India becomes second largest steel producer

Stainless steel production rose to 3.32 million tons for 2016: ISSF

India overtook Japan to become the second-largest steel producer in the world after China in 2016, according to data released by the International Stainless Steel Forum (ISSF).

India’s stainless steel production rose to 3.32 million tons for 2016 showing an impressive growth of about 9% over 3.0 million tons achieved in 2015, ISSF said at their annual conference in Tokyo, Japan.

“This is a great moment for the Indian stainless steel industry,” KK Pahuja, president, Indian Stainless Steel Development Association (ISSDA) said. “ISSDA urges continuous policy support from the government to take the Indian stainless steel industry to newer heights. ISSDA will continue to work with all stakeholders to promote stainless steel based solutions for sustainability and growth.”

“Several government initiatives like ‘Make in India’, smart cities, focus on improving sanitation & waste management facilities, building new infrastructure are is likely to give a strong push to the stainless-steel industry in future,” Mr. Pahuja added.

Source: The Hindu

Steel industry likely to benefit from GST, rate stands at 18 per cent

KOLKATA: Steel industry is likely to benefit from the new GST rate for steel which has been finalised at 18% ­­also the slab that includes most number of items. With key inputs like coal, iron ore pegged at 5%, which is the lowest slab under GST, steel companies like JSW Steel, JSPL, Tata Steel, SAIL etc., could be looking at lower input costs. Together, with a substantial slash in transport costs due to unified and standard tax rate under GST, this is likely to help steel companies reeling under large debt and also keep steel prices stable. Commenting on it, H Shivramkrishnan, Director, Commercial, Essar Steel said the GST rates are on expected lines. “We expect the requirement of working capital to go up in the immediate future. But going forward, GST will have a beneficial impact on the steel sector and the economy,” he added. On Friday, Tata Steel stock went up 0.53% to Rs 489.40 on BSE, JSW Steel rose 1.12% to close at Rs 193.55. Companies expect a reduction in logistics costs and time under GST. Presently, each time it crosses a state there are number of check post which delay the supply of goods to the customer. Under GST, a unified and standard rate of tax will reduce this cost and delay. In the post GST regime, industry estimates a 40 to 45% saving on time taken in movement of goods. Exclusion of gas from GST purview is a matter of concern especially for gas­based steel and power plants, said Essar Steel. It will also impact a number of smaller secondary sector players too who plan to use gas, a cleaner alternative fuel to produce steel.

 

Source: Economic Times.

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