Steel manufacturer in Central India, Chhattisgarh (considered benchmark index in small and medium scale manufacturer pan India) are seeking confirmation on power subsidy from the Govt of Chhattisgarh & Electricity board.
Notably, the rebate of INR 1.40/Unit was applicable from Nov’16 till 31st Mar’17. Hence, the manufacturers are worried as their input cost is not fixed.
According to the senior person in CG Mini Steel Plant Association (CGMSPA) that they will file the review petition against revised tariff and load factor issue.
According to the manufacturer, with the increase in power tariff by about INR 1.65/unit (including rebate of INR 1.40/MT & increase tariff INR 0.25/unit) the cost of production for Ingot/billet surge around INR 1,200/MT. Power price has impacted other steel producer like ferro alloys.
He all added, removal of subsidy is long process it may take minimum 1 month. As the Industries department will make the proposal and take a nod from energy department. Then proposal will go to finance secretary to analyse budgetary effect and if they find it fit , a Supplementary Budget has to made which will be present in Cabinet Meeting. And after Cabinet approval, a notification may issue.
To analyze the same the manufacturers in the market have already surged prices around INR 1,000/MT for Ingot & Billet but they have not received any positive response from the buyers end.
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