Steel ministry sees Rs2.5 lakh crore investment in 12th Plan

The working group on the steel sector for the 12th Five Year Plan assessed that steel production of the country will go up to 149 MTPA in 2016-17 from 89 MTPA likely in FY11-12. Funds required to support the 60 million tonne additional capacity would be around Rs2.5 lakh crore, it added

New Delhi: The steel ministry estimates that around Rs2.5 lakh crore investment will be required in the next five years to raise the domestic steel making capacity by 60 million tonnes per annum (MTPA), reports PTI.

The working group on the steel sector for the 12th Five Year Plan assessed that steel production of the country will go up to 149 MTPA in 2016-17 from 89 MTPA likely in FY11-12.

The steel making capacity of the country stood at 78 MTPA in FY10-11.

“The requirement of financial resources to support an additional capacity creation of about 60 million tonnes will be approximately Rs2.5 lakh crore during the 12th Plan (2012-17),” the group, headed by steel secretary PK Mishra, said in its final report.

The committee expects country’s steel making capacity to go up to 104.66 MTPA in 2012-13, 119.01 MTPA in 2013-14, 129.39 MTPA in 2014-15, 140.57 in 2015-16 and to 149 MTPA in the final year of 12th Plan Period.

It also expects Posco to start production from its Orissa plant during 2016-17 with 4 MTPA capacity.

Warning that securing such a large amount of investible funds at a reasonable cost would be a challenging proposition, the committee said it was imperative to review steel-related sectoral caps by banks and consider easing of norms relating to external commercial borrowings (ECBs).

“Special purpose long-term financing facility may also be created to finance huge investment in new steel plants,” it said.

The committee estimates the requirement of iron ore and coking coal to feed the additional capacity will increase to 206.2 million tonnes and 90.2 million tonnes respectively from 115 million tonnes and 43.2 million tonnes now.

It expects domestic steel demand to go up by an annual average of 10.3% to 113.3 MTPA in the final year of the 12th Plan Period from 65.61 MTPA in FY10-11.

“It is likely that in the next five years, demand will grow at a considerably higher annual average rate of 10.3% as compared to around 8.1% growth achieved during the last two decades (1991-92 to 2010-11),” it said.

User

EPFO mulls Contribution Card for subscribers

The proposal to provide Contribution Card to subscribers from 1 April 2012 will be discussed at the meeting of the EPFO’s apex decision making body—the Central Board of Trustees (CBT)—on 23rd December. The card will have details of account and will be updated every month

New Delhi: The retirement fund body Employees Provident Fund Organisation’s (EPFO) about 50 million subscribers may get a ‘Contribution Card’, similar to a bank pass book, which shall have details of account and will be updated every month, from April next year, reports PTI.

At present, it is mandatory for the employer to prepare ‘Contribution Cards’ and update it every month as per the provisions of the Employees’ Provident Fund Scheme, 1952, but such cards are not provided to the subscribers.

The proposal to provide Contribution Card to subscribers from 1 April 2012 will be discussed at the meeting of the EPFO’s apex decision making body—the Central Board of Trustees (CBT)—on 23rd December, a source said.

The card will also have additional information like date of birth, nomination and family details.

EPFO has proposed the CBT, headed by labour minister Mallikarjun Kharge, implementation of this proposal from 1 April 2012.

Earlier, the body had worked out a proposal to provide pass books to certain category of subscribers engaged in unorganised sectors, like building and construction, and brick kiln.

However, EPFO did not implement the scheme fearing that it might face difficulties as labourers change jobs frequently.

EPFO had argued that “it will be difficult for a worker to continue with the pass book when he changes his employment from unorganised to organised sector.” 

In order to overcome the problem, the EPFO wants the trustees to consider a uniform scheme to cover all subscribers 4.72 crore.

User

Central Bank of India waives pre-payment charges on housing loans

With this waiver, there will be no pre-payment penalty on all floating rate housing loans of the bank for both new as well as existing borrowers, Central Bank of India chairman and managing director MV Tanksale said

New Delhi: Central Bank of India has decided to waive pre-payment penalties on floating rate housing loans with immediate effect, reports PTI.

“In deference to Reserve Bank of India’s (RBI) suggestions, the bank has decided to waive penalty on pre payment of all floating rate housing loans irrespective of the source of funds of the borrowers,” Central Bank of India said in a statement.

With this waiver, there will be no pre-payment penalty on all floating rate housing loans of the bank for both new as well as existing borrowers, Central Bank of India chairman and managing director MV Tanksale said.

The Mumbai-based state-owned lender had already waived pre-payment penalty on foreclosures where the borrowers were making payments from their own sources.

Last month, State Bank of India and ICICI Bank decided to abolish pre payment penalty.

Housing finance companies has already been barred from charging foreclosure charges.

In October, sector regulator National Housing Bank (NHB) directed all the housing finance companies to desist from imposing a pre-payment penalty on home loan borrowers.

The levy of charge on borrowers for pre-closure of housing loans by housing finance companies has been considered further by the NHB in the light of subsequent developments and it has been decided that hereafter, housing finance companies should not charge a pre-payment levy or a penalty on pre-closure of housing loans, the regulator had said in a notification.

In addition, the NHB has also directed all the housing finance companies to have a uniform and not differential rates of interest for old and new borrowers that have the same credit or risk profile.

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)