English | Dzongkha Thursday, December 8, 2016

Local steel industries hope to gain from Indian budget

Nidup Gyeltshen, Thimphu
Mar 14 2016

Local steel industries hope to gain from Indian budgetThe recent Indian union budget has provided new hopes to the local steel industry, which has so far been experiencing one of the worst slowdown in their business for over a year.

The Indian union budget allocated over Rs 2,180 billion for infrastructural development including highways and railways. This new policy is expected to boost steel and cement demand in the region including Bhutan.

In fact, local economists are already speculating increase in steel and cement prices, which means consumers will land up paying more while industries benefit from higher prices.

The Secretary General of Industrialists Association of Bhutan said if newspaper reports are by any way true, it is good news for Bhutanese industries too.

General Secretary of the Industrialists Association of Bhutan Jochu Thinley said steel Industries today were operating on one third of their total capacity.

“If demand for steel and cement increases, we will be able to sell more and declare profit”

Today, local steel industries sell more in the domestic market like the hydropower projects than in India. Steel industries he said was just breaking even.

He said, the cost of shutting down is more than the cost of continuing operation.

So far, there has been no change in the market scenario.

Steel industries have been affected since the demand for steel dropped following a slowdown in the Chinese economy last year.

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