SAIL launches special incentive scheme to boost industrial eco-system

Bokaro: Steel Authority of India Limited  (SAIL) has launched a special incentive scheme to boost the industrial eco-system around it’s five integrated steel plants at Bhilai, Rourkela, Bokaro, Durgapur and Burnpur.  The initiative marks SAIL’s participation in the steel ministry’s ‘Purvodaya-Mission’.

Named ” Ispaati Ilakon ka Vikas: SAIL ke Sath”, the scheme aims to contribute towards overall socio-economic development of the districts in which the steel plants are located, boost commercial activities through nurturing and developing the local industries and act as a catalyst for employment generation, informed Bokaro Steel Plant Public Relation’s official.

Following the clarion call given by Prime Minister Narendra Modi on “Mission Purvodaya”, a visionary step towards spurring growth and development of the eastern region of the country the mission has taken forward by Minister of Petroleum & Natural Gas and Steel, Dharmendra Pradhan and he launched “PURVODAYA: Accelerated development of eastern India through integrated steel hub” at Kolkata on 11 January 2020.

The proposed Integrated Steel Hub, encompassing the states of Odisha, Jharkhand, Bihar, Chhattisgarh, West Bengal and Northern Andhra Pradesh, is envisaged to be a catalyst in the accelerated growth of Eastern India.

The objective of this hub would be to enable swift capacity addition and improve the overall competitiveness of steel producers both in terms of cost and quality. This is another major initiative of the Ministry of Steel under the dynamic leadership of  Shri Dharmendra Pradhan after the launch of “Ispati Irada”-a collaborative campaign aimed at promoting the usage of steel in the Country. With these initiatives, the Indian Steel Sector is poised to play a significant role in making India a $5 trillion economy.

This Scheme aims to provide the local MSMEs, based in the districts in which SAIL Plants are located, the required impetus to be competitive and encourage new industries to come up in the region. SAIL will arrange to hold inventory for the MSMEs who are registered under the Scheme based on their monthly consumption so that the burden of holding inventory and requirement of large working capital is reduced. Further, on these materials delivered from the warehouse, special incentives will be extended on the price of the material. Besides these incentives, MSMEs will be extended the same volume-based incentives as extended to large customers from the same branch locations. These incentives are expected to provide a relief of Rs 700-800 per tonne of steel for MSMEs under the Scheme.

Besides these price-based incentives, SAIL is planning to extend a flexible annual MOU with quantity-based turnover discount, interest-free credit, cash discount and consistency benefit. In order to make cheaper funds available, SAIL will provide comfort for the company’s channel financing schemes in which eligible consumers can have access to credit at relatively lower rates of interest. These non-price based incentives have an opportunity advantage in the range of about Rs 200-400 per tonne.

Besides these benefits, local steel plants shall help in skill development, knowledge enhancement, local promotions and other consultation opportunities etc..Even for new industries that are going to come up in these Plant-based districts, an additional tapering incentive scheme shall be extended by SAIL.

Launching the Scheme during the Purvodaya summit organised by CII in Kolkata Pradhan said, “The Scheme will go a long way in boosting economic activity in the Purvodaya States and provide these natural resource-rich states with the ideal framework for achieving socio-economic development.” Speaking on the occasion, Chairman, SAIL Shri Anil Kumar Chaudhary said, “The legacy of SAIL in building the Nation will continue with this initiative.” He invited the entrepreneurs to take part in the Scheme and help SAIL in creating all-round development in the steel areas with Ispati-Irada.

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