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Business News/ Industry / Infrastructure/  Government to allow all types of steel to be used for highway construction due to rising steel prices
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Government to allow all types of steel to be used for highway construction due to rising steel prices

The move by the government is seen as a step to ensure cost reduction in building of highways using steel

Highways have complex effects on local economies and may actually reduce economic activity in some regions. Photo: Pradeep Gaur/MintPremium
Highways have complex effects on local economies and may actually reduce economic activity in some regions. Photo: Pradeep Gaur/Mint

Union Government today announced that the Ministry of Road Transport and Highways has issued orders that all types of steel will be allowed for the construction of highways in the country.

The Ministry in statement said ," all steel to be allowed to be used for highway construction whether produced from ore, billets, pellets or melting of scrap - would be allowed to be used for National Highway construction, as long as it meets the standards required for specific grades of steel."

"The steel proposed to be used would be tested in NABL-accredited laboratories as a third party check before approval. The move is based on the analysis and discussions with stakeholders and also technical opinion," the statement further added.

Earlier, the contract provisions required use of steel produced by primary/integrated steel producers only. In view of the increase in steel prices, which can impact the cost of building national highways, Union Minister for Road Transport & Highways, Nitin Gadkari had suggested the need to re-look at all conditions which could be restrictive, without impacting the quality of material used for highway construction.

With this step, the supplier base for steel used in the construction of national highways would increase, leading to more competition and better price discovery by the markets. This is also part of the continuous effort by the Minister to reduce costs through use of new technology, reducing restrictions on suppliers and making the procurement system transparent.

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Published: 14 Feb 2021, 02:56 PM IST
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