Indian steel firms can now divert iron-ore from restricted mines to boost sales

KOLKATA, India - Nov. 1, 2019 - PRLog -- Steel and iron industry have been facing tough days, but the news that the domestic marketers are now allowed to divert their production from the restricted areas to other safe or better joints and plants. This is a major relief for iron ore and pig iron manufacturers in India, as they will have the same liberties as the state-run steel authority of the nation. It was allowed to sale iron from the captive areas to a majority of 25% of production from the mines in the earlier financial year.

It has proven to be a very big boost to the iron-ore industry in the nation and the eastern states. 'The diversion of iron production from the captive mines to other areas has been one of the most beneficial Diwali gifts this year, said Ravi Agarwal, head of Neo Metaliks Ltd. The present iron production regulation did not have the provision of diverting minerals from the restricted blocks for the usage by any other entity. In a recent report by the Mines ministry, SAIL can sell some portion of the iron ore from their blocked mines to the free market to increase sales.

The decision will also help private and domestic pig iron manufacturers in Kolkata and other cities. It is likewise anticipated to assist tide over the expected iron-ore deficit in the following days. According to Sumit Khaitan, 'the upcoming recommendations are coming as restricted and strict rules that govern the mining practices are not helping in maximizing production, they are becoming a hindrance to iron ore sales. They are supposed to be open and used exceeding volumes to keep the steel prices and market in balance.'

Though it is a valid step for the development of steel companies, however, the initial stage will witness obstacles and later become successful. Matters like iron-ore clearing and further advances take time, but company proprietors have high hopes. Ravi Agarwal said, 'we were facing a very bleak situation, might had to import, but this move gave us some breathing space, we will try to maximize the opportunity for iron-ore production'.

Neo Metaliks Limited is one of the reputed pig iron manufacturers in Durgapur, producing the finest quality steel, iron-ore and cast iron. They have come to business since 2003 and have earned a name for itself in the industry.

For more information visit, http://www.neometaliks.com/product/Grades-and-Specifications

Contact

Neo Metaliks Limited

Address: 71, Park Street, "PARK PLAZA" 6F North Block, Kolkata-700 016.

Telephone : +91 33 40504050

Fax: +91 33 2217 7317

Email: info@neometaliks.com

Website: http://www.neometaliks.com/