SAIL launches Steel Yard in Coimbatore, Makes Life Easier for MSMEs

The Steel Authority of India Limited, in Coimbatore, has opened up a steel yard. It will bring great relief to local micro, small, and medium enterprises. Located in Vellanaipatti, this new facility will occupy 3.5 acres of land and house ready-for-sale steel products intended for long-term supply agreements within this region.

M Karthikeyan, President of the Coimbatore District Small Industries Association (CODISSIA), has said that SAIL plans to increase the steel stock to 5,000 tonnes at the yard. Currently, around 450 tonnes of steel are available there, with 450 tonnes more in transit.

One of the key advantages of direct procurement from SAIL is the potential cost savings for MSMEs, which could save approximately ₹2-3 per kilogram compared to market prices. “Purchasing steel from dealers often comes at a higher cost due to bulk resale. We have raised concerns with SAIL about prioritizing bulk sales to traders,” said Karthikeyan.

In response to these concerns, SAIL has assured CODISSIA that steel will also be available in smaller quantities, with a minimum of 3 tonnes per transaction. Additionally, MSMEs committing to purchase at least 1,200 tonnes annually through a memorandum of understanding (MOU) will receive a ₹300 per tonne discount.

SAIL has expressed its readiness to arrange and stock specific steel products based on regional industrial needs, urging industries to sign agreements for their requirements by March 31, 2025. However, the Tamil Nadu Small and Tiny Industries Association (TANSTIA) has requested that smaller sales categories, starting from 500kg, be introduced to support small-scale industries.

S Surulivel, Vice-President of TANSTIA, emphasized the importance of catering to small industries that cannot afford bulk purchases. “A minimum quantity of 500kg per sale is necessary to ensure small industries benefit from this initiative,” he said.