Date:15/11/2006 URL: http://www.thehindubusinessline.com/2006/11/15/stories/2006111501091100.htm

Back Ministry mulls fiscal sops for steel cos to invest in R&D

Ambar Singh Roy

Jamshedpur , Nov. 14

The Union Ministry of Steel is open to the idea of recommending fiscal incentives for steel companies that invest a percentage of their profits in research and development.

This was stated by the Union Minister of State for Steel, Dr Akhilesh Das, while speaking to newspersons after delivering the inaugural address at a function held here on Tuesday to mark the 44th National Metallurgists Day and the 60th Annual Technical Meeting of The Indian Institute of Metals.

Upgradation

Earlier, Dr Das said the Indian steel industry must adopt modern technology for value addition to their existing product portfolios and also for diversification to new products manufacture, such as high tensile steels for the automotive sector "where there is enormous opportunity".

"The steel industry is in the best of times and India has great potential to emerge as a hub for both manufacture and consumption of steel. The economy is growing and the prospects of the steel industry are bright in the coming years. Present government policies also encourage import of technology. Steel companies should not only make the best quality steel but also at the cheapest cost," he said.

"Invest an increased percentage of your profits on R&D. The Government will make provisions to facilitate investment in R&D by the steel sector," he said.

Land acquisition

On controversies pertaining to acquisition of land for industrial use, he said that wherever available, wasteland would be acquired for the purpose of setting up industries. However, if there was no choice but to acquire farmland for setting up industries, its owners must be paid compensation at real market value.

Regarding the Mittal-Arcelor and Tata-Corus deals, Dr Das commended Indian companies for their effort to emerge as global players and leverage upon synergies at the global level.

He said the National Steel Policy was aimed at achieving 110 million tonnes of steel production by 2019-20 at a compounded annual growth rate of 7.3 per cent.