Chhattisgarh steel plants have halted production to oppose an earlier rise in power charges upto 27% by the state government.
Chhattisgarh Mini Steel Plant Association has been on strike since yesterday (1 Sept’15) to oppose the state government’s increased power charges (w.e.f 1 June’15). The state government had increased power tariff on Chhattisgarh based steel plants by 22-27%; leading to high production cost of steel.
In the current scenario, steelmakers are not be able to sustain in domestic market amidst sluggish domestic demand and high production cost. In Chhattisgarh, there are 185 mini steel plants, 200 rolling mills, 76 sponge plants and 400 micro plants dependent on steel units, which are now in critical condition. The large steel plants in the state, which consumes about 450 MW electricity per day and provides a huge fund of INR 300 crore to Chhattisgarh revenue department, is obliged to shut down operations.
On strike, the steelmakers have urged that if proper steps are not be taken by the government, they will have no option but to shutdown their plants permanently, which will ruin steel business in Chhattisgarh. Moreover, it will also increase electricity charges to local consumers in the state due to non-consumption of electricity which is otherwise utilized by steel plants.
Chhattisgarh Mini Steel Plant Association’s major demands
1.Rationalization of electricity charges:
a) Billing should be done in KWH.
b) Rebate on night hour tariff should be increased from 15% to 30% to competent peak hours.
c) Subsidy on load factor of maximum utilization unit should be decreased to 60-63% from 70%.
d) Electricity charges that were increased to 27% for low level consumers should be reviewed and applied with INR 200 KVA and INR 4.20/unit in order to provide benefit to rolling mills and low level consumers.
e) Extra power units, which would be consumed in this year, should be charged at INR 3.50/unit compared to previous year.
f) Duration for safety fund should be kept as earlier to 1.5 months instead of 2 months as at present.
g) Electricity charges on iron & steel industry should be decreased from 5% to 3% without delay.
2. Commercial and interstate sales tax on steel products should be kept unchanged at 3% and 1%.
3. Like other states, in Chhattisgarh also open access (private) for power distribution should be provided.
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