India: Steel re-rolling mills association urges West Bengal govt to reconsider hike in electricity tariffs

• Industry warns tariff shock may cause mass closures, job losses
• SRMA calls for arrears to be spread over 6 years to ease burden

The Steel Re-Rolling Mills Association of India (SRMA), representing units in and around Durgapur, West Bengal, has urgently appealed for government intervention to prevent the imminent shutdown of steel and ferro alloy industries. The plea comes amid a steep 30% power tariff hike imposed by the Damodar Valley Corporation (DVC). The West Bengal Electricity Regulatory Commission (WBERC) has approved a tariff of INR 4.64/unit for 2025-26, along with INR 1.36/unit for past arrears (2014-2020), raising the effective rate to INR 6.00/unit. Including additional charges such as the energy charge rate (ECR) and monthly variable cost adjustment (MVCA), the total cost now surges to INR 6.80/unit – far higher than the INR 4.42/unit paid by industries in Jharkhand. This disparity threatens the competitiveness and sustainability of West Bengal’s industries, which last had their tariffs reviewed in January 2025, over five months ago.

SRMA has urged that arrears be spread over the six years to ease the burden. The association has also demanded a forensic audit of ECR and MVCA charges since 2017-18. Industry leaders warn that this tariff shock, combined with global market uncertainties and rising export freight costs, could lead to mass closures and job losses, undermining the state’s industrial and employment goals.

As a result, the cost of producing silico manganese in Durgapur has surged by INR 5,000/t ($60/t), while that of ferro manganese has risen by INR 3,000/t ($35/t). Durgapur, a critical hub for manganese alloy production in India, contributes approximately 1 mnt annually.

A key smelter from Durgapur informed BigMint that, for the first time, industrialists have collectively taken a stand to curb mounting losses in the manganese alloys sector. The protest stems from prolonged market uncertainty, stagnant overseas demand, and the absence of price revisions for over five months. Compounding the crisis, ongoing geopolitical tensions have nearly doubled export ocean freight costs. The recent hike in power tariffs has further intensified financial strain. Industry insiders believe the impact of this protest will become evident in the coming weeks, with hopes that the government may step in to offer some relief.