Private steel major Tata Steel on Sunday expressed confidence that the
situation would be back to normal in the next quarter after the company's performance was
impacted temporarily in November last owing to demonetisation.
December was much better month for Tata Steel than November last affected due to
demonetisation, the company's Managing Director (India and South East Asia) T V Narendran
said. The steel industry in the country had gone through a difficult time during the last two years, when the sector faced many challenges
from the international market, he said claiming that the situation had also affected steel sector in China in 2015.
The Union government had intervened and supported the domestic steel sector when a lot of steel was coming into the country including
the dumping of steel from China in 2015, he said.
In fact, one million tonne of steel was coming in from China every month during the period when the government had felt that it would be
unfair for them if no immediate steps were taken to protect the domestic steel sector, he said. Appreciating the initiatives of the
government, Narendran said the steel sector had played an important role in the development of the country and it had invested Rs
300,000 crore in the country during the last ten years.
Hailing the government initiatives to protect steel sector, Narendran said it had helped the situation to improve from the beginning of 2016
when even the international market had started picking up.
However, the increased cost of coal and ironore during last three/four months had put cost pressure on the company, besides
demonetisation being another issue affecting the performance of the company, Narendran said.
Source: ET