THE government and the steel industry locked horns on Wednesday, blaming each other for the soaring steel prices. While Tata Steel managing director B Muthuraman blamed the government for not playing a constructive and positive role to contain prices, steel secretary RS Pandey said the government has taken all possible steps to control inflation and the responsibility fell on steel companies that were still reaping high margins despite a rise in input cost. "Steel prices are not sustainable at current levels when difference between domestic and international prices have increased to Rs 15,000-20,000 per tonne levels. So far, only the steel industry has played a positive role in controlling the price rise. No positive role has been played either by the steel consuming industrial sectors or the government so far. There is a need for the government to play an active role and cut 14% excise duty on steel, for which collections are expected to double this year,' Mr Muthuraman said during a steel conclave organised by industry chamber Ficci and the steel ministry here on Wednesday. He said government policies were encouraging overseas steel players to sell their products at higher rates in India, pushing domestic producers into a difficult situation. Mr Pandey, however, said the government has taken all possible steps to control current inflationary situation and companies could not shrug off their responsibility, especially when their EBIDTA margins remained at a healthy 20% rate even as late as June this year. During 2007-08, this margin ranged between 15% and 40%. "There is no denying the fact that input cost for the steel sector has gone up with iron ore prices rising by about 90% and coking coal by almost 200% in last one year. However, despite this, steel companies have maintained healthy earnings. I hope in days to come industry will find ways to control price hike,' said the steel secretary. In May, the primary steel producers had reduced prices of their products by Rs 4,000 and promised the prime minister to hold the price line for the next three months. This deadline is coming to an end in July and there are fears that prices may shoot once again. A committee of secretaries (CoS) is slated to meet next week to take stock of the situation. Earlier, steel minister Ram Vilas Paswan warned flat steel retailers and distributors of stern action if they took advantage of high demand in the retail sector and charged higher prices. "I have noted with concern that certain dealers and traders have sold flat steel products at higher than market prices, taking advantage of the high demand in the retail market,' he said while speaking at the conclave. Onimposing a further freeze on steel prices, the minister said as steel was a decontrolled sector, the government cannot interfere every time. He, however, gave a clearer indication of the future course of action by emphasising that India was a welfare state and the government ought to safeguard public interest. Jharkhand Cabinet clears rehabilitation policy THE Jharkhand Cabinet on Wednesday cleared the much-awaited rehabilitation & resettlement (R&R) policy, report Navtan Kumar & Rakhi Mazumdar from Ranchi & Kolkata. This paves the way for kicking off several mega steel and power ventures that have been hanging fire for years. A significant feature of the R&R policy is that the investors will have to distribute 1% of the annual net profit of the project among affected families every year. Also, the requiring body (ie the investor) will have to spend 1% of their annual net profit for community development. All affected families, whether possessing land or without land, will be provided with a pucca house. Land losers will be compensated with cash at market rates. The family will have the option to invest half of the sum in shares or debentures. An ArcelorMittal executive welcomed the state Cabinet's decision to announce the state R&R policy. "We are very happy that the state government has announced its policy. This will help us expedite our project. We will fully abide by it,' he said. Tata Steel is planning to set up a 12-million tonne greenfield venture in the state, its second unit after Jamshedpur. A Tata Steel spokesperson said: "We are yet to go into the details of the R&R policy which was approved by the state Cabinet. We will be in a position to comment on it only after we study it.'