West Bengal ferroalloy makers that contribute 40 per cent of national production are expecting annual relief package of around Rs 30 crore on electricity tariff from the cash-strapped West Bengal government.
An immediate 50 paise relief in power was proposed by the power department which after clearance from the Chief Minister Buddhadeb Bhattacharjee, is pending before state finance minister Ashim Dasgupta, according to Indian Ferro Alloys Producers’ Association (IFAPA).
“According to the scheme, West Bengal State Electricity Distribution Company (WBSEDCL) will offer immediate relaxation of 50 paise a unit and the tariff will be raised by 10 paise per year till the problem is mitigated in the next five years,” said IFAPA eastern chapter secretary J K Chatterjeehe.
“Moreover, these units are located in Naxal-hit Bankura district and any severe impact on the industry will hit direct and indirect employment of 10,000 people,” Chatterjee said.
Finance department officials could not be contacted for comment.
There are five ferroalloy companies under WBSEDCL, which contribute over 40 per cent of the total national production.
These are saddled with a sharp hike in power tariff of Rs 4.5 a unit in the current fiscal. However, the ferro units under the Damaodar Valley Corporation supply region are not affected as the power tariff in that region is Rs 2.8 per unit.
