Central India (Raipur) based induction and rolling mill operators have decided to shutdown their mills from 1 Sept’15 for some specific duration.
Mini Steel Plant Association (MSP), CG Re-roller Association, an association of ingot, billet and re-rolling units based in Raipur (Chhattisgarh), has decided to shutdown its units from 1 Sept’15 in order to prevent them from high power costing by the state government. Earlier in June’15, Chhattisgarh government had raised power charges by INR 1.00/unit to INR 5.50/unit; putting steelmakers under pressure.
In current scenario, there are about 180-190 furnace units, out of which 80-85 units have been closed for quite long. And, only about 100-105 units are presently operating, out of which approx 30-35 units are of MS ingot merchant sellers. Earlier, only ingot manufacturers had decided to close their plants on voluntarily basis, but as days passed, re-roller units are also considering to close their plants.
Raipur (Chhattisgarh) is one of the major steel hub in central India and produces about 7,000-8,000 MT MS ingot/billet and 5,000-7,000 MT rebar per day. The state based ingot/billet manufacturers sell 70% of produced material in domestic market. These steelmakers are demanding state government to reduce power charges in order to bail industrialists out from huge losses.
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