September 08, 2008

PSIEC and STC to sign MoU to augment steel supplies to small units

It is reported that Punjab Small Industries & Export Corporation will enter into an agreement with State Trading Corporation to stabilize domestic steel prices in the region. The move is aimed at providing raw material to the steel consuming industries, especially small and medium enterprises of the state at a reasonable price.

Mr AR Talwar principal secretary industry & commerce of Punjab said that that both the corporations would evolve a system through which the raw material could be procured from different sources to check the prices of steel and other materials. He said that "Under this initiative, PSIEC and STC will jointly work out a system whereby the efforts would be made to stabilize the prices of steel and then supply it to the steel consuming industry of small and medium enterprises sector of the state. So far, we have received proposals for setting two ICD in Amritsar and Ludhiana for which three companies have applied."

To ascertain the potential for exportable items in the state, Punjab government is conducting a study through Indian Institute of Foreign Trade. Mr Talwar said that "The survey will highlight the items which have potential for export from Punjab."

Presently, PSIEC is one of the resources available to small and medium enterprises in Punjab for getting raw material for consumption. To encourage the private participation for setting up inland container depots and container freight station, the state government has decided to offer incentives in the shape of reduced change in land use charges.