Blog

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.”

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 CVS Pharmacy launches its own mobile payments and loyalty solution, CVS Pay – TechCrunch dragon pharma bodybuilding the power of peppermint: 15 health benefits revealed 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.