“But these issues are not drawing anybody’s attention, and could adversely affect India’s economic growth. India’s ability to create steel is poor and it is becoming worse,” he said.

Steel Minister Ram Vilas Paswan pointed out that though companies cut prices, some of their dealers were selling at bloated prices, taking advantage of heavy demand in the retail market.

“We will deal very severely with such market manipulation. We have already directed PSU steel companies to keep a strict watch on such malpractices. I request other producers to keep a similar watch on their retail and distribution network,” he told the steel makers.

Steel ministry secretary Raghav Sharan Pandey pointed out that the government had no option but step in when prices started rising abnormally.

Taking a dig at Muthuraman, he said, “That government is the best which governs the least. If we did nothing, prices would have shot up by Rs 10,000-15,000, and this would have made our industry happy. Despite increase in raw material prices, some companies still have 20 per cent EBIDTA (earnings before interest, depreciation and taxation) margins in June.”

Ruling out any further cuts in excise duty as demanded by Tata Steel, Pandey said the government had already lowered it by 2 per cent in the Budget.

Muthuraman had argued that government was netting more money now since steel prices had zoomed.

HOT AND HARD

We observe that despite our reduction in prices the same is not reflecting in sectors such as cars and real estate. I have not seen any reduction in prices there, which makes a clear case for the government to intervene.

... contd.