Power charges in Chhattisgarh may go up by Rs 0.40 paisa from 15th of June, SteelMint learned from the industrial sources. At present charges are at Rs 4.70 per unit. After increasing it will move up to Rs 5.20-5.30 per unit. MS Ingot manufacturer says, “MS Ingot cost will increase by Rs 300-350/MT considering 800 units consumed to make one tonne of Ingot”.
Earlier in April power charges improved in many of the cities, in Andhra Pradesh charges move up by 20% and in Punjab by 9-12%. Whereas in Uttar Pradesh it hiked up twice this year within 8-9 months of time, first in September 2012, it increased by 20% and second, recently in June 2013 by 0.24 Paisa due to 3.71% surcharge imposed. Now charges are at Rs 6.65 per unit.
Steel industry is going with tough time with overall installed capacity increased but production remains low due to subdued demand. Shortage of coal, along with rising raw material prices like power, sponge and scrap (due to falling rupee against dollar) made steel industry's life hard to sustain.
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