SAIL launches scheme to boost industrial eco-system

KOLKATA: Steel Authority of India Limited (SAIL) has launched a special incentive scheme to boost the industrial eco-system around it’s five integrated steel plants at Bhilai, Rourkela, Bokaro, Durgapur and Burnpur. Named "Ispaati Ilakon ka Vikas: SAIL ke Sath", the Scheme aims to contribute towards overall socio-economic development of the districts in which the steel plants are located, boost commercial activities through nurturing and developing the local industries and act as a catalyst for employment generation. The initiative marks SAIL's participation in the steel ministry's 'Purvodaya-Mission'.
The scheme aims to provide the local MSMEs,based in the districts in which SAIL plants are located, the required impetus to be competitive and to encourage new industries to come up in the region, an official statement said.
SAIL will arrange to hold inventory for the MSMEs who are registered under the scheme based on their monthly consumption so that the burden of holding inventory and requirement of large working capital are reduced.

Further, on materials delivered from the warehouse, special incentives will be extended on the price of the material. MSMEs will also be extended the same volume based incentives as extended to large customers from the same branch locations. These incentives are expected to provide a relief of Rs 700-800 per tonne of steel for MSMEs under the scheme.

Apart from price based incentives, SAIL is planning to extend a flexible annual MoU with quantity-based turnover discount, interest free credit, cash discount and consistency benefit. SAIL will also provide comfort for company’s channel financing schemes in which eligible consumers can have access to credit at relatively lower rates of interest to provide cheaper funds. These non-price incentives have will give an advantage of Rs 200-400 per tonne. Local steel plants will also help in skill development, knowledge enhancement, local promotions and other consultation opportunities. SAIL is also planning to extend an additional tapering incentive scheme for new industries that are going to come up in these plant-based districts, the statement added.