Today, the Tamil Nadu government has announced a sharp hike of 15% in power tariff. However, the entire burden will not have to borne by consumers as the state government has planned to provide subsidy to offset the hike.
Earlier, industrial electricity tariff were at INR 5.5-6.0 per unit and now it will be in the range of INR 6.35-6.85 per unit, learned by SteelMint from steel manufacturer based in the region.
“The revised power tariff wef 13 Dec, 2014 will increase by 15% across all segments of consumers,” as per a press release from Tamil Nadu Energy Regulatory Commission.
Later, Chief Minister O Panneerselvam announced providing subsidy to TANGEDCO to offset the tariff revision to avoid passing on the entire burden to the consumers.
Largest Billet manufacturer based in Chennai said, “Due to hike in power prices by 0.85 paisa per unit, our cost of production has increased by INR 600-700/MT. But, on the backdrop of low Billet demand, we have increased prices by only INR 500/MT and quoting at INR 34,000/MT.”
Market sources also confirmed that production in the state is at the level of 40-50% capacity because of low finished steel sales. Manufacturers based in Chennai quoted, “We will oppose the electricity hike as industry is facing deep trouble with low demand and high cost of production.”
At present, MS Ingot is being offered at INR 33,000/MT, while, Billet at INR 33, 800-34,000/MT. However, Rebar of 12 mm is offered at INR 38,300-38,500/MT (prices are including ED).
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