Steel Authority of India Limited' purchases are only meant for actual

Tag : Steel Products

The country's flagship public sectorundertaking in the steel sector, Steel Authority of India Limited(SAIL), has informed its MoU HR Coil customers in writing thattheir purchases from the company are only meant for actualconsumption and that any resale of the product will attractpunitive action.

The MoU customers have also been advised to inform SAIL about theirstock position on a regular basis.
These directions are part of a slew of measures taken by thecompany to ensure that retail prices of its steel products arecontained in the market.
SAIL, which has not changed its selling prices since May 2008, inline with its commitment to the Government, has also cautioned itsdealers about selling SAIL products beyond MRRP limits.
Branch sales offices of SAIL have been alerted to keep a strictvigil on this and instructed to stop supplies to dealers who do notadhere to the direction.
SAIL has already informed the public about operating MRRP ofproducts like TMT Bar and GP/GC sheets through newspaperadvertisements and its own website www.sail.co.in.
The company has also advertised in newspapers about the chargeableprice of HR Coil in the National Capital Region.
Among other measures taken to contain retail prices of SAILproducts in the market, is an advisory to trade MoU customers tolimit retail margins to within Rs. 1,200 per tonne over the priceat which they have procured from SAIL.
Any departure from this limit will invite stern action. Thesecustomers have also been advised to inform SAIL about theirstockholding of SAIL products on a weekly basis.
To further ensure that steel reaches actual consumers at correctprices, SAIL has introduced a special scheme in Kolkata andFaridabad for supply of HSM Plates and CR Coils/Sheets to consumerswho require up to ten tonnes of these items against an affidavitacknowledging self-consumption.
This has also been advertised through the print media.