Following the increase in power tariffs by the State
Governments and prolonged major power cuts throughout India, the Ferro alloy
industry in Andhra Pradesh, which accounts for 30 per cent of India's total
production, has reduced production by 40 per cent.
Ferro alloy production is very power intensive, forming around
40 per cent of the total production cost. Producers are up in arms about the
recent 50 per cent increase in power costs, as this adds approximately Rs 4,000
a tonne to ferro chrome and ferro manganese, and Rs 9,000 for ferro silicon,
threatening their competitiveness and future investments in the region.
The worst every power blackout in India's history highlights
major problems with the state run electricity boards, with coal shortages,
farming subsidies and power theft all contributing to power shortages. Only the
bigger ferro alloy producers with their own independent power generation
facilities can overcome the power cuts, leaving smaller producers to idle their
furnaces.
Source: Asmet
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