Ferro alloys firms hail cut in power tariff
The State governments decision to reduce power tariff in favour of ferro alloys firms will give a major relief to the heavily burdened industry
Vizianagaram: The State government’s decision to reduce power tariff in favour of ferro alloys firms will give a major relief to the heavily burdened industry.
The ferro alloy firms are facing troubles for the past few years and have been shutting down their units due to neck deep losses.
The companies are spending huge bills on power tariff to operate furnaces and to convert molten metal into ferro alloy material.
Apart from salaries, maintenance, raw material costs and other expenditures, the managements spend around 40 per cent on power bills.
Vizianagaram district has huge number of ferro alloys companies like Jindal Limited at Kothavalasa and Gold Star Ferro Alloy at L Kota, FACOR at Garividi, Deccan, SKS, Swasthik and Andhra Ferro Alloys.
After jute mills, this is the second largest employment provider here. But due to high power tariffs, the firms are facing financial problems and suffering huge losses.
At present, the firms which are being operated under 132 KV line are being charged Rs 4.95 per unit and the firms under 133 KV are paying Rs 5.37 per unit of power.
Earlier, the Association of AP Ferro Alloys industries urged the government to cut the power tariff to run their units without losses.
The government has appointed a committee to look into the power tariff issue and made recommendations reducing the power tariff to Rs 1.50 per unit during 2016-17 financial year and the government has adjusted the amount in their bills.
Later the association again met the government and appealed to adjust the bills in the next few years in the similar way.
In fact, the government agreed to give subsidy of Rs 0.75 per unit.