Posted on 11 Jul 2024
Representatives of Chhattisgarh's iron and steel industries have voiced significant concerns over the recent hike in electricity tariffs, stating it is severely impacting the sector, according to local press reports.
Chhattisgarh is major steel manufacturing state in central India. It is the third-largest steel producing state in the country and contributes around 12% of the country’s crude steel production, 10% of India’s pellets and 20% of sponge iron production, notes Kallanish.
A delegation from the Chhattisgarh Mini Steel Plant Association, Chhattisgarh Sponge Iron Manufacturers Association, and Chhattisgarh Steel Re-rollers Association met with Chief Minister on Monday (8 July 2024) to address this issue.
The delegation pointed out that the power tariff for the steel industry has recently surged by 26% to INR 7.60 per unit, a sharp contrast to other steel-producing states where rates have remained stable.
This hike, they argue, threatens the competitiveness of the state's steel industry. They also reminded the CM that the industry has benefited from special relief packages, including subsidies and stable tariffs, over the past 8-10 years.
“We are already under pressure because of such poor domestic steel demand. Monsoon is already a slack season for us. We are operating at reduced capacities of say 50-60% and now this power hike is adding to the huge burden for us. We need to find a solution to this,”, quotes a member of Chhattisgarh sponge iron association.
CM has assured the representatives that relevant officials would review the matter and make a decision within the next four to five days, according to an official release.
Source:Kallanish
