Wednesday, November 17,
SteelMint Exclusive
Today, a press conference was organized by Chhattisgarh Mini Steel Plant Association in Raipur. The main agenda was to discuss about the heavy losses that the state steel makers are facing for the past 6 months.
The association proposes to go on a strike from 1st December mainly to oppose the following issues:
* Higher raw material prices especially iron ore, scrap and sponge iron
* The association’s president claims futures trading on NCDEX to be one of the major reasons behind the severe crisis in the steel market. Basis between physical & financial market (NCDEX) at Ghaziabad are into backwardation by Rs.1,000-1,300/MT. Whereas, at Mandi Gobindgarh basis are at backwardation of Rs 500-700/MT. This shows the incorrectness and panic in the physical market
* Higher power charges mainly a demand charge that is being charged at the rate of Rs 310 per K.V.A. Plants will have to a pay a fixed charge of Rs 12 lakhs/month even when they are closed and this is not feasible
* Demand for finish goods is low and products are sold at lower prices
* At present plants are operating at 40% and lower capacities and after the strike near about 80% plants will be closed
Chhattisgarh Mini Steel Plant Association’s President Mr. Ashok Surana made certain suggestions to the State Government which are as follows:
* In order to save the steel plants from incurring heavy losses, a relief package in form of reduced power charges should be provided
* The demand charge of Rs 310 per K.V.A to be reduced to Rs 150 per K.V.A
* Electricity charges during the night shift i.e. from 10 pm to 8 am to be reduced by 30% as availability is more during these shifts
* To reduce the electricity additional charges from 10 p per unit to 5 p per unit
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