(MENAFN- KNN India)
Coimbatore, Dec 18 (KNN) In a significant development for the region's micro, small, and medium enterprises (MSMEs), the Steel Authority of India Limited (SAIL) has inaugurated a 3.5-acre steel yard in Vellanaipatti, Coimbatore.
The facility aims to streamline steel procurement, ensuring availability of ready-to-purchase products and long-term supply agreements with local industries.
According to M Karthikeyan, President of the Coimbatore District Small Industries Association (CODISSIA), the yard will eventually stock up to 5,000 tonnes of steel. "Currently, the yard holds 450 tonnes, with an additional 450 tonnes in transit," he stated.
The direct procurement opportunity provided by SAIL is projected to save MSMEs Rs 2-3 per kilogram compared to prevailing market rates.
However, Karthikeyan cautioned against bulk sales to dealers, which could undermine the price advantage for MSMEs. SAIL has committed to selling smaller quantities, with a minimum order of 3 tonnes per transaction.
In a bid to encourage large-scale procurement, SAIL is offering a Rs 300 discount per tonne to MSMEs that sign a memorandum of understanding (MoU) committing to an annual purchase of at least 1,200 tonnes.
Furthermore, SAIL has assured CODISSIA of its readiness to stock specific steel products required by local industries. Enterprises are urged to formalise their requirements by March 31, 2025.
Despite the yard's potential benefits, some industry representatives, including Tamil Nadu Small and Tiny Industries Association (TANSTIA) Vice-President S Surulivel, have voiced concerns.
Surulivel pointed out that small industries, which cannot afford to buy in bulk, need the option to purchase smaller quantities starting at 500 kilograms.
“Smaller sales categories will enable true inclusivity for small-scale industries. Catering only to bulk buyers risks excluding the most vulnerable enterprises,” he remarked.
The Coimbatore steel yard represents a vital step toward addressing the steel procurement challenges faced by MSMEs, but its success will depend on balancing accessibility and affordability for industries of all scales.
(KNN Bureau)
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