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Profiteering by linepipe industry: Who is going to bell the cat?
Nov 23: Pumped up with a double dose of government support -- high anti-dumping duties coupled with compulsory local value addition policies -- the line pipe industry is riding high.
8Here are some rough calculations:
-- In seamless pipes, the average realization is Rs 55,000 to Rs 60,000 per ton, while EBITDA per ton is of the order of Rs 7650.
 -- Now pipe companies are targeting to reach the Rs 11,000 mark or even more.
 -- In the ERW segment, the average realization is Rs 45,000 to Rs 50,000 per ton, with earning EBITDA per ton of Rs 4,500 to Rs 5,000.
 -- They are now looking at Rs 8000 or more
8The point is that such profiteering raises the cost for the oil & gas industry owned by the government.
8Is this a case of filling up private coffers, as these companies are controlled by a handful of highly connected individuals, at the expense of the government?
8Who is going to bell the cat here?
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