Mini steel plants and other small industrial units in Chhattisgarh are considering a proposal to purchase power from National Thermal Power Corporation (NTPC) and Manikaran Power Limited (MPL).
Small industries comprising mini steel plants, sponge iron and re-rolling mills have been purchasing power from the state-run Chhattisgarh State Power Distribution Company (CSPDC). The units require 500 Mw of power and are among the biggest power consumers of CSPDC.
“The company had proposed to hike the industrial power tariff by 50-70 per cent and it was not viable for the small industries, which were struggling for survival,” Shyam Kabra, chairman of the electricity committee of the Urla Industrial Association, told Business Standard.
The proposal for increasing the industrial power tariff had been submitted by the CSPDC to the Chhattisgarh State Power Regulatory Commission (CSPRC). “We approached the commission to express our view that the higher tariff was not acceptable, but the response was not encouraging,” Kabra said.
For steel units, CSPDC had proposed to hike the tariff from Rs 2.30 per unit to Rs 3.90 per unit. “Since small industries cannot bear the additional burden, we are exploring the possibility of purchasing power from other agencies at a cheaper rate,” Kabra said.
The industrialists have formed a group and are in the initial stages of negotiations with NTPC (the country’s largest power producer) and MPL. Kabra said the industrialists were looking at all options before finalising a deal.
NTPC-SAIL, a joint venture company, had proposed to supply power to the small industries. “NTPC-SAIL had approached us, as it had surplus power,” Kabra said.
The small entrepreneurs have, however, formed a joint action committee to protest against the state government’s move to increase the power tariff. “Due to serious financial irregularities, the CSPDC has been incurring losses and the government wants to compensate it from the industries,” Mahesh Kakkad, the president of the Chhattisgarh Udyog Mahasangh, said.
