Hike in power tariffs at the states like West Bengal and
Orissa has severely affected the profitability of ferro alloys industry, said a
top official.
Higher power tariffs has made it difficult for ferro alloys
plant to survive in the long run unless they have their own power plant,
including linked coal blocks and manganese ore mines.
“The cost of power which used to be around Rs 3 per unit
has now gone up to Rs 5 per unit. An increase in tariff by Rs 2 per unit means
the production cost has gone up by around Rs 8,000/MT, which is an additional
impact of around 15-20% on the cost of production. Power accounts for up to 40%
of cost of production of ferro alloys. So, hike in power tariffs has hit us
badly”, added the official.
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