Over 500 steel producers in
Punjab today went on strike for four days to protest alleged harassment by
officials of the Central Excise department. Earlier, the industry including
induction furnaces, rolling mills had announced to go on strike for indefinite
period. “But after the Central excise department assured us to look into
our problems, we then decided to shut down our units for four days only as mark
of our protest,” Mandi Gobindgarh Induction Furnace Association President
Mohinder Gupta said.
The induction furnaces in
Ludhiana have also supported the strike and decided to shut down units for two days.
The call of induction furnace owners has got the support of Steel Chamber of
Commerce and Industry, Bhaav Nagar (Gujarat) Steel Association and Import and
Export Association.
The industry had accused Central
Excise department of conducting “unnecessary” checks of ship breaking
material consignment coming from Bhaav Nagar in Gujarat and declaring the
material as unfit for use in induction furnaces. The steel makers alleged that
the department was not allowing them to sell ship breaking material to traders
and manufacturers on unwarranted charges.
Steel producers also alleged that
the department pressurized the industry to collect excise duty on scrap
material received from supplier.”We face problems in collecting excise
duty as sometimes suppliers like bicycle makers do not want to pay duty on sale
of scrap then what can we do,” a Ludhiana-based induction furnace owner said.
However, Central Excise Commissioner S J Singh had
said that the department was taking steps under the law.”There is no
intention of the department to harass any one. We are taking steps as per law
… there been some past arrears (due towards industry), some of people
(industry) are not available,” he had said. Punjab is a major manufacturer
of secondary steel in the country and manufacturing capacities are concentrated
in Mandi Gobindgarh, Khanna and Ludhiana.
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