Indian Steel Association (ISA) has urged the Government and banks for a financial package, including loan restructuring, to counter the crisis arising from cheap imports and subdued prices.
ISA, representing the over $100 billion steel industry, met Steel Ministry official last month and sought a comprehensive support package on the lines of the ones extended to textiles and sugar sectors.
The industry body is also in talks with the Indian Banks Association (IBA) for the package. “A comprehensive support system involving participation of stakeholders is urgently required to ensure steel sector's survival,” ISA Secretary General Sanak Mishra told PTI. ISA has requested the government as well as banks for an immediate dispensation in the form of a special package for the industry to tide over the current crisis, he added.
The package will be in two parts - moratorium on payment of interest and principle amount and segregation of Sustainable and Balance debt, he said. The moratorium will be a short-term measure to ensure continued operations, while various remedial measures are put into place.