SSIs want power tariffs rationalised

Small-scale unit owners in the Sagar district of MP are pressing for a rationalisation of "exorbitant" power tariffs.

The units supply dolomite to detergent and surfactant manufacturers, and rock phosphate to tea and coffee growers, in crude form. Further, two steel utensil manufacturers serve a big unorganised market in the Bundelkhand region, particularly for low-income families.

The MP State Electricity Board and the MP State Regulatory Commission have aggravated the problems of SSI units, which are already struggling to survive in the absence of proper marketing and mother units.

In 1981-82, the MP government made a futile attempt to set up a steel complex. "Of the 12 units granted loans, only two are now surviving. The rest have been closed due to high power tariffs, improper funding and market support," said the vice-president of the Madhya Pradesh Laghu Udyog Sangathan and the secretary of the Sagar Udyog Sangh, Devendrapal Singh Chawla.

He said the state electricity board levied a fixed charge at Rs 150 per KvA on low-tension power consumption; additionally, the board is also charging for April-September consumption by calculating a minimum cost on a 20 per cent load factor, while power consumption during the rainy season remains 5-7 per cent. The load factor increases only in September and hardly touches 10 per cent," Chawla said.

According to Chawla, a high-tension connection of 100 kV load consumes 11,000 units and a low-tension connection of 75 HP load consumes 2,400 units per month, on average. But the state board charges fixed and minimum charges too, which make it difficult for the already ailing SSI units in the town.

"The power cost is as high as Rs 6 per unit," said Chawla.

Sagar supplies dolomite from its Hirapur mines for detergent companies like the makers of the "Ghari" soap and detergent power makers. Makers of the Ghari brand and detergents have units in Sagar.

Some small-scale packers and processors have also started supplying rock phosphate for coffee and tea growers of West Bengal and the Northeast.

"Later the mineral is exported in powder form to China. The total supply's worth may be touching Rs 1.5-1.75 crore annually for rock phosphate, while dolomite supply hovers around 25,000 metric tones," a supplier told Business Standard.

According to the department of mines, rock phosphate reserves in the state are estimated at 21.47 million tones, constituting 13.35 per cent of the country's reserves of 160.91 million tonnes.

The deposits are only located in the Jhabua and Sagar-Chhatarpur districts. Sagar dolomite reserves put Madhya Pradesh at the second spot among the Indian states.

However, the department of industries has neither made efforts to utilise the capacity nor encouraged the SSI units to supply minerals. Officials at the state electricity board were not available for comment.