Gujarat govt plans incentives for stainless steel manufacturers

Gujarat has rolled out the red carpet for stainless steel manufactures by announcing special incentive and separate policy for them. Speaking at the inaugural ceremony of the country's first four-day long stainless steel fair Indinox-2010 at the university ground, chief minister Narendra Modi invited stainless steel manufacture to enter the healthcare (gymnasium equipments) and toys segment.

"If anyone from the stainless steel sector is willing to enter gymnasium equipment manufacturing segments and toys for kids as part of their corporate social responsibility (CSR), then we could draft a separate policy for it and also give them incentives if required," said Modi. He suggested that stainless steel manufacturers as part of their CSR could start manufacturing polished toys for children so that they get ample opportunity to play in public parks, especially children parks, schools or Anganwadi centres.

Terming it as an emerging sector, he said there is enough room for every manufacturer. "Health care industry is developing at a very fast pace and youths are getting more health conscious leading to opening of gymnasiums. So if there are 1000 gyms today, there could be 10,000 two or three years down the line," he said.

SK Roongta, chairman of Steel Authority of India Limited (SAIL) expressed optimism for steel sector. "India is currently ranked fifth in stainless steel production in the world in volume terms. Going by the current growth trends it is expected to be the second largest producer of stainless steel in 2015". He also said that SAIL is open to tie-ups with entrepreneurs of Gujarat.

Rajendra Shah, chairman and managing director, Shah Alloys Ltd said that stainless steel sector is facing tough competition from China due to subsidies offered by Chinese government. Central government should also offer some help to stainless steel sector to face China.