)
Mini steel plants across the mineral-rich state of Chhattisgarh have stopped production since Saturday, demanding concession in the power tariff for their survival.
Chhattisgarh, which was once the biggest steel market in the country, had 200 mini steel plants located mostly in the industrial centres of Raipur, Bilaspur, Korba and Raigarh. Following the sinking market and raw material crisis, mini steel plants in the state were passing through one of their worst phases.
“Since 2007 and 2013, in all 83 mini steel plants in the state had been closed down, while the remaining had stopped production on Saturday,” Chhattisgarh mini steel plants association president Ashok Surana said. Most of the units were running below 50 per cent production capacity, he added.
The steel makers had urged the state government to consider their demands. “If our demands are considered, we will restore production,” Surana said, adding that a delegation of industrialists would soon call on the minister to discuss the issue. The decision of the association had rendered 50,000 workers jobless, he added.
Under the package, the mini association had demanded to consider relaxing the existing power tariff plant for the industries consuming power from the state-owned company. Besides reducing the demand charge, the industrialists want state government to exempt the units from six per cent electricity cess, a discount of 30 per cent on tariff for using power between 10pm and 6am. The demands include curtailing power tariff from Rs 4.97 a unit to Rs 3.50.
According to industrialists, the power company was imposing a fixed demand charge on mini steel plants at Rs 360 per kilovolt amperes (KVA). Ironically, a unit paying an electricity bill of Rs 60 lakh per month when on full scale production would be required to pay Rs 12 lakh every month as fixed demand charges even if it failed to consume a single unit of power.
Industrialists are demanding that the fixed demand charges levied at Rs 360 per KVA kilovolt amperes be curtailed to Rs 160 per KVA.
Officials in the state’s energy department said it was a big task to consider reducing the demand charge to just half, as the state would lose about Rs 200 crore.
