Tata Steel expects Indian steel prices to hold; Koushik Chatterjee lauds new scrappage policy

Prime Minister Narendra Modi, on Friday, launched the national vehicle scrappage policy, saying it will help phase out unfit and polluting vehicles and also promote a circular economy.

CNBC-TV18’s Nisha Poddar spoke to Koushik Chatterjee, executive director and chief financial officer at Tata Steel, on the scrappage policy. He also spoke on a range of other issues like steel prices and the company's M&A plans.

On scrappage policy, Chatterjee said, “The new scrappage policy is actually a carbon friendly policy. The scrappage policy provides that there will be redundancy of automotive cars and scraps being produced over the next 5-7 years. It also depends on the state of the economy, because as economies mature, the consumption of white goods, cars, automobiles, etc., increases and then the scrappage turns into a useful circular product, which then can be recycled and used. We see that happening in China now, but even China is just about starting to produce more scrap.”