Madras, Aug. 19: Seamless Steel tubes would be manufactured in India and a plant for this purpose would be set up in Tiruchi shortly. The manufacture of seamless steel tubes would save the country’s foreign exchange to the tune of Rs. 13 crores annually said Mr. T.A. Pai, Union Minister for Heavy Industry, to-day. Mr. Pai told newsmen that the total cost of the captive seamless steel plant would be about Rs. 25 crores and scrap iron from various BHEL units in the country would be siphoned to the factory in Tiruchi. The scrap available from the local Southern Railway Workshop would also be utilised by the plant. Referring to the export of railway wagons Mr. Pai said that he had asked wagon manufacturers to explore markets in Australia which was importing its entire requirement. There were enquiries from Iran also. He said the wagon industry expected orders for only 10,000 carriages out of a capacity of 30,000. He was afraid that recession might set in leading to considerable unemployment. The Government was taking note of the situation and was studying the effects of credit squeeze, so that production might not be affected. The Union Minister said that Yugoslavia has agreed to pay higher prices for wagons ordered from India. As a result of the negotiations carried on with Yugoslavia it had been agreed tentatively that the order must be reduced to 1,300 from 3,600 wagons and the escalated prices must be given even to the carriages already delivered.
January 27, 2025
