In a notification published yesterday, Chhattisgarh (CG) state-run power company has proposed to increase the power tariff nearly by 20%. This will be consecutively second hike in tariff in last 2 years. In total, power tariff has now increased by upto 45% (till date) compared to last year.
Chhattisgarh State Power Distribution Company (CSPDC) has proposed to increase the basic tariff for FY17 from basic INR 4.25 per unit to INR 5.30 per unit. Demand charges will also increase from INR 360 to INR 375.
Industries sources reported that effective power charges in FY16 was INR 5.10-5.30 per unit, which will become INR 6.10-6.32 per unit in FY17.
Furnace manufacturers reported that production cost will increase approximately by INR 700-900/MT. While, rolling mill manufacturers mentioned that cost to make rebar will increase by INR 300-500/MT.
Besides, ferro industry that consumes more power will have additional burden of INR 3,500-4,000/MT in production cost.
Chhattisgarh is a hub of secondary steel producers with more than 160+ furnace and 220+ rolling mills units in the state. The state is a major hub due to low cost steel production amid nearby availability of iron ore and coal coupled with low power tariff.
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