SMAM urges govt to prefer secondary sector steel for construction projects

Steel Manufacturers Association of Maharashtra has urged the central government to encourage the secondary steel sector by preferring its products in government construction projects.

Speaking to PTI, SMAM president Yogesh Mandhani said the secondary steel sector has upgraded technology to make good quality products.

He informed that the association has written letters Prime Minister Narendra Modi and Union Minister Nitin Gadkari, requesting them to prefer secondary sector steel in construction projects.

The secondary steel sector contributes around 57 of the total production in the industry and generates huge employment.

Mandhai said about 138 small and medium steel units are running in Maharashtra.

The steel units are facing a shortage of raw material as the lease of most of the mines have been expired and extraction of ore has come to a halt, he added.

Mandhani said the cost of steel is rising due to higher demand and shortage of ore.

If the government prefers steel from the secondary sector, the price of steel will come down as the secondary sector sells steel at a less price than the primary sector, he added.