By P. Sarojini’
Kolkata (CWBN)_ A statement from a senior industry body said that many steel wire units in India are currently facing shortages in raw materials and hence are in the risk of closure of several plants. The steel wire makers in the country belong to the labor-intensive small and medium enterprises (SME) sector and offer employment to a large number of workers and contribute to the country’s economy as well. Currently, due to the shortage of raw materials and import restrictions caused by pandemic outbreak, about 100 units in an organised sector in the country are operating below 50 per cent of their rated capacity. If the current situation prolongs, these units may end up in closure of the plants leading to unemployment of several workers.
Steel Wire Manufacturers Association secretary-general Tirthankar Banerjee told PTI, “The industry is facing acute shortage of high-grade wire rods, the main raw material for wire production, which has varied application in nation-building”. He added “The paucity of high-grade wire rods is 50 per cent, and it is due to inadequate domestic supply and import restrictions”.
The wire makers along with their association have already discussed this issue with the government to seek a complete solution as this may lead to unemployment as well as closure of plants. They sought for government intervention in this matter to ensure supply of raw materials and import of specialised items that are not produced in the country.
The association urged the union government to discuss the issue with the Steel Authority of India to streamline its specialised rods plant at Burnpur and advice Rashtriya Ispat Nigam (RINL) and other private steel makers to supply adequate quantity of raw materials at fair prices to the SME sectors.
