Kashmiri local steel units shut

17 October 2016

With shutting of operations by local steel manufacturing plants in Kashmir due to ongoing uprising against civilian killings, the outside steel companies are controlling the Valley market by supplying “sub-standard products” while the local units continue to bleed huge business losses.

As the Kashmir economy is in doldrums due to continuous government restrictions and shutdown calls by resistance camp, the steel manufacturing units in Kashmir have not been left unscathed from the prevailing situation.

The steel manufacturing units are those units which deals with manufacture of structural steel rods and thermo mechanically treated (TMT) steel used for construction purposes.

As per steel manufacturing unit holders in Kashmir, they have incurred Rs 300 crore business losses during last three months and continue to incur huge losses on account of interest payments, idle wages and maintenance costs of their units.

“These three months have been toughest for us as one side our losses are piling up, while on the other hand outside companies are easily supplying their products here which is eating our market while our units continue to remain shut,” said a steel manufacturing unit holder wishing not to be named.

He said that while two steel manufacturing units in Kashmir are shut, remaining 7 units in Jammu province are operating normally.

“Outside companies are sending sub-standard steel to Kashmir taking undue advantage of prevailing situation,” he said adding that with each passing day, their losses are accumulating.

“As per our preliminary estimates, steel manufacturing sector have suffered Rs 300 crore losses due to shutting of operations, it includes all interest charged by banks on finances, idle expenses, maintenance costs of plants and other expenses along with business losses,” he said.

To mention, Kashmir’s premium steel manufacturing unit Himalayan Rolling Steel Industries Pvt. Ltd with a Rolling Mill having production capacity of 2,50,000 TPA of TMT and structural steel is also closed for last three months since July 8.

This unit used to suffice to the 75 percent of the local steel demand in Kashmir. However its closure has provided open chance for outside companies to capture market.

“We are in a fix most of all dealers have stopped repaying us money for stock they bought from us before unrest. Now they are using our money to buy products of outside companies, while the local units continue to remain shut,” said an another unit holder adding that closure of local units has also put in jeopardy jobs of employees and laborers working there.

“Continued shutdown has bought us on brink of bankruptcy while outside units continue to make hay. They always wanted to be dependent on them and this unrest is helping them in achieve their objective,” he said adding that continued closure of units is boom for their outside manufacturing units be it in cement or steel.

Source – Greater Kashmir