Forging industry sees 20% cost rise on high power tariff: AIFI

The forging industry, which majorly supplies its products to auto parts makers, has seen a 20 per cent jump in costs owing to rising fuel and steel prices along with high power tariffs in Maharashtra, an industry association said.

However, despite this, the sector is expected to clock a 10 per cent growth in this fiscal year, according to Yash Munot, chairman western region, Association of Indian Forging Industry (AIFI).

As compared to usual trend of low production during April-May period, this year has witnessed a continued higher demand during the first quarter, he said.

"One of the main concerns in this region is the electricity tariffs which have gone up in Maharashtra since August and which are probably the highest in the country.

"Moreover the fuel and steel prices have also shot up significantly. All these factors combined have increased our costs by 20 per cent," said Munot.

Industries such as forging and steel need a lot of power, he said, adding, "The increase in electricity charges is a pressing concern for all of us, especially when more than half of the forging capacity is catered through this region."