SAIL takes firm steps to contain retail Steel prices

July 19th, 2008 - 10:50 pm ICT by ANI  

New Delhi , July 19 (ANI): The country’’s flagship public sector undertaking in the steel sector, Steel Authority of India Limited (SAIL), has informed its MoU HR Coil customers in writing that their purchases from the company are only meant for actual consumption and that any resale of the product will attract punitive action.

The MoU customers have also been advised to inform SAIL about their stock position on a regular basis.

These directions are part of a slew of measures taken by the company to ensure that retail prices of its steel products are contained in the market.

SAIL, which has not changed its selling prices since May 2008, in line with its commitment to the Government, has also cautioned its dealers about selling SAIL products beyond MRRP limits.

Branch sales offices of SAIL have been alerted to keep a strict vigil on this and instructed to stop supplies to dealers who do not adhere to the direction.

SAIL has already informed the public about operating MRRP of products like TMT Bar and GP/GC sheets through newspaper advertisements and its own website .

The company has also advertised in newspapers about the chargeable price of HR Coil in the National Capital Region.

Among other measures taken to contain retail prices of SAIL products in the market, is an advisory to trade MoU customers to limit retail margins to within Rs. 1,200 per tonne over the price at which they have procured from SAIL.

Any departure from this limit will invite stern action. These customers have also been advised to inform SAIL about their stockholding of SAIL products on a weekly basis.

To further ensure that steel reaches actual consumers at correct prices, SAIL has introduced a special scheme in Kolkata and Faridabad for supply of HSM Plates and CR Coils/Sheets to consumers who require up to ten tonnes of these items against an affidavit acknowledging self-consumption.

This has also been advertised through the print media. (ANI)

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