| SALEM: Expressing deep concern over the high inflation rate in the country, prime minister Manmohan Singh on Friday called upon the industry to step up productivity and increase output to ensure non-inflationary growth momentum in the economy.
¡°In the 11th Five-Year period, we expect the economy to grow at around 9% per year. To ensure this growth process is not inflationary, we must step up productivity and increase output,¡± Mr Singh said while laying the foundation stone for SAIL¡¯s Salem steel plant¡¯s modernisation and expansion plan.
The demand-supply mismatches and high international crude oil prices have resulted in inflation crossing the double-digit mark in the country. However, steps like reining in steel prices and raising interest rates have seen inflation going down marginally over the last fortnight.
¡°...because of steep increase in international prices of petroleum products and primary commodities, inflation and its control have emerged as major concerns of policy. In doing so, we have also tried to ensure that inflation control measures do not hurt the growth momentum we have built over four years,¡± the prime minister said.
On the domestic steel sector, the prime minister said it remained a seller¡¯s market and would continue to remain so in coming years despite per capita steel consumption remaining much lower than industrialised and non-industrialised countries. ¡°...Today, we are in a seller¡¯s market and will continue to be. Hence, it is imperative that we work hard to augment supply and meet the rising demand for steel,¡± he said asking companies to make rapid strides in improving technology and managerial skills.
The SAIL function looked more like an election rally with the participation of a galaxy of senior Cabinet members including UPA chairperson Sonia Gandhi. During her speech, Ms Gandhi congratulated SAIL for turning around the Salem steel plant that was put under the privatisation route by the previous NDA government. ¡°As soon as we came to power, we abandoned the policy of indiscriminate privatisation. PSUs would continue to play an important role in key infrastructure sectors such as steel, power, oil and gas, coal, railways and communication,¡± she said.
The function was also attended by finance minister P Chidambaram, steel minister Ram Vilas Paswan, shipping minister T R Baalu, panchayati raj minister Mani Shankar Aiyar and health minister Anbumani Ramadoss, among others.
The Salem steel plant¡¯s expansion and modernisation plan includes an investment of Rs 1,902 crore to convert it into a fully-integrated unit. It includes steel melting and continuous casting facilities, expansion of cold-rolled mill complex and other facilities for production of value-added stainless steel products.
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