The Ministry of Steel has allowed Rail Vikas Nigam Limited to import 5,000 tonnes of steel products for the Kolkata Metro Rail project.
The central government in 2017 instituted a policy in favor of domestically manufactured iron and steel products (DMI and SP) on imports for any project of a public sector company.
At its meeting on 14 May, the Standing Committee under DMI and SP policy, chaired by Additional Steel Secretary Rasika Choubey, allowed RVNL to import 5,000 tonnes of 1080 head harden rail for its 64 km metro corridor project in Kolkata.
The minutes of the meeting said, “The Standing Committee took note of the fact that the project was of strategic importance for which an exemption of 6,700 tonnes was given in 2019.”
In December 2018, RVNL had proposed to purchase 11,800 tonnes of rail. In October 2019, the Ministry of Steel gave it a discount to purchase 6,700 tonnes. RVNL is implementing the project jointly with Kolkata Metro Railway.
The revised demand for the remaining 5,000 tonnes cannot be met by domestic suppliers as the Steel Authority of India Limited does not produce these rails, while RVNL has already placed a development order with Jindal Steel & Power Limited, in the meeting minutes. Having said.
SAIL said it was in the process of building the rail, but foreign experts involved in commissioning the Head Harden facility at the Universal Rail Mill of Bhilai Steel Plant left the country in April due to the second wave of Covid-19.
News Source: ConstructionWorld
