The CEOs of major steel producing companies, namely, Steel Authority of India Limited, Tata Steel, RINL, JSW, Essar Steel, Ispat Industries Ltd. and representative of Jindal Steel & Power Limited met the Hon'ble Prime Minister in the afternoon on 7th May 2008. These companies produce over 60% of the total steel production in the country.

They shared the Government's concern regarding the inflationary situation in the country and in accordance with the Prime Minister's advice to contain prices, decided to take the following measures, with immediate effect:

Prices of Flat products are reduced by Rs. 4000 per tonne by producers who effected price increase in April '08.In addition, prices of rebars and structurals where no increase was effected in April / May'08 are also reduced by Rs 2000 per tonne.

These reductions will be applicable for all steel that gets consumed in India either directly or after further processing.

Further, the Steel Producers will hold these prices for the next three months.

They put forward the following proposals for favourable consideration by the Government:

In view of the roll back in prices and self-restratnt by producers on steel exports, Government should not impose duty on export of steel products.

In order to facilitate investment in steel sector and to augment capacities in the country, which is the long term solution, the allocation and renewal of iron ore and coal mines, should be ensured on priority. Allotted natural gas should be made available and the legal environmental and forestry clearance issues be resolved by setting up an Empowered Committee, if required.

An ad valorem duty of 15-25% FOB be imposed on export of iron ore in order to conserve the mineral as China is doing in respect of coke in which case 25% ad valorem export duty has been levied.

Appropriate reduction in excise duty on steel be considered which will be passed on to the consumer.

NMDC, MOIL and Coal India Limited should reduce prices of their products, which are inputs for the steel industry and the PSUs should give priority to domestic steel producers for supply of inputs before undertaking exports and should, charge long-term international prices .

Auction of manganese ore and iron ore by MOIL and NMDC, is attracting speculative prices in the domestic market, should be stopped.

Railway freight on steel making raw materials and on steel products should be maintained at current levels/classification.

The Prime Minister appreciated the gesture of the steel industry in reducing the prices and assured them of expeditious examination of their proposals.