Centre to allocate 7.1-lakh tonnes of iron, steel to small-scale industries, National Small Industries Corporation

New Delhi : 7.1-lakh tonnes of iron and steel will be allocated to the small-scale industries Corporations (SSICs) and National Small Industries Corporation (NSIC) in the present fiscal year 2011-12, said the Steel Ministry. Later, SSICs and NSIC then allocate iron and steel to SSI units and the other government departments from producers such as Steel Authority of India (SAIL), RINL and Tata Steel. But, the corporations can supply a maximum of 30% of the allocated quantity to the government agencies.

Moreover, the quantity of iron and steel for allocation to SSIs and government agencies could be surged further during the present fiscal according to the demand. Centre offers Rs 500-550 per tonne handling charge to the corporations with the aim to ensure that SSIs get the raw material. In 2008-09, Centre had allocated 6.99-lakh tonnes of steel, 7.43-lakh tonnes in 2009-10, while 7.66-lakh tonnes till December 31 of the 2010-11 fiscal.