Steel re-rolling mills' operators have urged the government not to allow the Indian Tata Group to produce finished steel products like MS rods and iron bars in their proposed steel plant.

A joint delegation of Bangladesh Re-rolling Mills Association (BRMA) and Bangladesh Steel Mills Owners Association (BSMOA) placed the demand to Industries Minister Matiur Rahman Nizami at his office.

The steel producers also demanded the supply of natural gas to their plants at a lower rate than that would be proposed to the Indian Tata Group.

President of the BRMA Ali Hossain and Secretary General Sheikh Masadul Alam Masud led the delegation.

They, however, said they would welcome the investment of Tata Group in the steel sector if it produces raw materials like sponge iron for the local mills. But if the Tata is allowed to produce finished rod and iron products, which is sued in construction sector, it would be damaging for the local steel mills.

"More than one million people are directly and indirectly involved in local steel industries….all of us would be affected if Tata produces MS rod," they said. After the meeting, the leaders claimed that the Industries Minister had assured them that Tata would not be offered gas supply at a subsidised rate or any lower rate.

"The government will not do any thing in regard to the investment of Tata Group that can hamper the interest of the local industries or the national economy," Nizami was quoted to have told the local steel producers.

The steel and re-rolling mills operators also informed Nizami about their problems regarding import of raw materials. They alleged that local steel and re-rolling mills are facing serious problems due to irrational duty structures for the imported raw materials and failure of the PSI companies in properly inspecting the shipped raw materials.