SAIL Opens Steel Yard at Vellanaipatti; Boost To Msmes

19 Dec 2024 CW Team

Steel Authority of India Limited (SAIL) has opened a steel yard in Coimbatore, providing much-needed relief to micro, small, and medium enterprises (MSMEs) in the region. The yard, spanning 3.5 acres in Vellanaipatti, will maintain ready-to-purchase steel products and sign agreements with MSMEs to supply their steel requirements on a long-term basis. President of the Coimbatore District Small Industries Association (CODISSIA) M Karthikeyan said that SAIL plans to stock up to 5,000 tonnes of steel in the yard. "Currently, the yard has around 450 tonnes of stock, with another 450 tonnes in transit," he said. Karthikeyan emphasised that direct procurement of steel from SAIL would save MSMEs approximately 2-3 per kilogram compared to market prices. "If SAIL sells steel to dealers in bulk, they will resell it to us at higher prices. We have informed SAIL officials that we will raise this issue if they prioritise bulk sales to traders," he added. To ensure MSMEs benefit, SAIL officials assured CODISSIA that steel would also be sold in smaller quantities, with a minimum of 3 tonnes per transaction. Additionally, MSMEs that sign a memorandum of understanding (MoU) with SAIL and commit to procuring a minimum of 1,200 tonnes annually will receive an extra ?300 discount per tonne. SAIL has also expressed its willingness to arrange and stock specific steel products required by industries in the region. The organisation has requested industries to sign agreements for their requirements until March 31, 2025. MSME industrial organisations have urged SAIL to introduce smaller sales categories, starting from 500kg, to cater to the needs of small-scale industries. Vice-president of the Tamil Nadu Small and Tiny Industries Association (TANSTIA) S Surulivel stressed that small industries cannot afford to buy steel in tonnes. "They require smaller quantities. Sales should begin from a minimum quantity of 500kg. Steel must be available in various categories based on demand. This approach will ensure that small-scale industries truly benefit. Selling only in bulk will favour medium and large industries," he said.

Steel Authority of India Limited (SAIL) has opened a steel yard in Coimbatore, providing much-needed relief to micro, small, and medium enterprises (MSMEs) in the region. The yard, spanning 3.5 acres in Vellanaipatti, will maintain ready-to-purchase steel products and sign agreements with MSMEs to supply their steel requirements on a long-term basis. President of the Coimbatore District Small Industries Association (CODISSIA) M Karthikeyan said that SAIL plans to stock up to 5,000 tonnes of steel in the yard. Currently, the yard has around 450 tonnes of stock, with another 450 tonnes in transit, he said. Karthikeyan emphasised that direct procurement of steel from SAIL would save MSMEs approximately 2-3 per kilogram compared to market prices. If SAIL sells steel to dealers in bulk, they will resell it to us at higher prices. We have informed SAIL officials that we will raise this issue if they prioritise bulk sales to traders, he added. To ensure MSMEs benefit, SAIL officials assured CODISSIA that steel would also be sold in smaller quantities, with a minimum of 3 tonnes per transaction. Additionally, MSMEs that sign a memorandum of understanding (MoU) with SAIL and commit to procuring a minimum of 1,200 tonnes annually will receive an extra ?300 discount per tonne. SAIL has also expressed its willingness to arrange and stock specific steel products required by industries in the region. The organisation has requested industries to sign agreements for their requirements until March 31, 2025. MSME industrial organisations have urged SAIL to introduce smaller sales categories, starting from 500kg, to cater to the needs of small-scale industries. Vice-president of the Tamil Nadu Small and Tiny Industries Association (TANSTIA) S Surulivel stressed that small industries cannot afford to buy steel in tonnes. They require smaller quantities. Sales should begin from a minimum quantity of 500kg. Steel must be available in various categories based on demand. This approach will ensure that small-scale industries truly benefit. Selling only in bulk will favour medium and large industries, he said.

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