The Andhra Pradesh Ferroalloys Producers Association has said that the proposed hike in power tariff would lead to the closure of units in the state.
Power distribution companies have sent proposals to the state government for abolishing the special tariff category status to the ferroalloys industry and increase the tariff by Rs 2 a unit on a par with the other HT consumers.
Speaking to mediapersons here, association chairman R K Saraf said if the new proposals were implemented, the units would be left with no option but to close down. They might also lay off labour. Around 30 units operate in the state employing about 100,000 people directly or indirectly. The industry body has decided to close their units from April 1 if the government goes ahead with its decision.
Stating that AP did not have the required mineral wealth for production of ferroalloys, he said the industry had come up in the state only because of the reasonable power tariff.
The ferroalloys industry contributes Rs 600 crore per year towards various taxes to the state government and foreign exchange to the extent of Rs 500 crore. The proposed hike will earn just an additional Rs 250 crore to the dicoms, he said.