Amid the recent hike in power tariffs in Chhattisgarh, nearly 200 `mini steel plants' in the state on Monday announced to stop operations indefinitely since today night to protest against the hike in power tariff. On the shutdown, an industry representative said that with the increased electricity cost, running the plants is not possible. However, the Chhattisgarh State Power Distribution Company Ltd (CSPDCL) official defended the hike saying that it was insignificant given inflation.
The mini steel plants produce raw materials including TMT bars and steel rods and the closure of their operations is likely to affect over two lakh workers and their families. Moreover, prices of construction materials may also rise. "The protest will continue until the state government addresses the issue," general secretary of the Chhattisgarh Mini Steel Plant Association Manish Dhuppad said on Tuesday.
Association warns of permanent closure
While speaking to the media, Dhuppad said that the association has written to CM Vishnu Deo Sai and has met his cabinet ministers and senior government officials seeking relief from the tariff hike. He added that the association has no intention to stage a protest but the hike has made it unfeasible to run small-scale steel plants, compelling the owners to halt the operations.
He warned that the units would be permanently closed if no solution was found as the financial losses would mount. With the latest hike, Dhuppad said steel plants will have to pay Rs 7.60 per unit instead of Rs 6.10 per unit.
New prices to come into effect from June 1
Last month, the Chhattisgarh State Electricity Regulatory Commission (CSERC) announced an average hike of 8.35 per cent in power tariff across all categories of consumers with effect from June 1. Tracing the previous rates, Dhuppad said that between 2003 and 2018, the tariff was around Rs 4.50 per unit which helped attract industrialists from other states. But since then the power tariff has consistently risen, making mini steel plant's survival difficult. For the last five years, the association has been demanding a Rs 1.40 per unit subsidy in power tariff along with an exemption from electricity duty for 15 years. The state officials have, however, argued that the hike is nominal as compared to inflation over the last eight years.
(With PTI Inputs)
