Chhattisgarh government today has announced a relief package of INR 3.55 crore for state based steel companies, in which the government has reduced power charges by INR 1.40/unit (including VCA charges).
The revised power tariff is applicable from 1 Aug’16 and will be INR 5.16/unit. Earlier, it was INR 6.19/MT for the state based steel manufacturers. In the recent notification, power tariff reduced by INR 1.03/unit and VCA charges by INR 0.37/unit applicable from 1 Aug’16 and differed till Mar’17.
Since starting of the current month, Raipur (Chhattisgarh) based steel manufacturers have been shutdown their operations in order to oppose high power tariff charges compared to electricity tariff, prevailing in neighboring state.
SteelMint learned that the steelmakers are yet to take final call on re-opening of closed plants. Mini Steel Plant Association and CG Steel Re-roller Association has called for a meeting today in the evening to take a discussion on revised power tariff.
Chhattisgarh has a 9 MnT pa sponge capacity and 4 MnT of finish long capacity. There are over 150+ furnace units in the state. According to industry sources, out of total steel companies in the state, around 40-50% are closed and rest are operational with limited production.
In Raipur, present offers for MS ingot are assessed at INR 19,000-19,100/MT, MS billet at INR 19,700-19,800/MT, P-DRI at INR 11,100-11,300/MT and DR CLO at INR 13,100-13,300/MT. All prices are basic, ED and VAT extra.
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