Steel manufacturers demand reduction in power tariff

24 September 2015

A delegation of steel manufacturers today met Maharashtra Governor Ch Vidyasagar Rao and sought reduction in power tariff for the industry.

The delegation from Wada region in Palghar district, led by Maharashtra Industries Minister Subhash Desai, met the Governor at Raj Bhavan here and sought reduction in power tariff, a Raj Bhavan spokesperson said.

The Minister requested the Governor to include backward parts of the rest of Maharashtra region, including Wada, in the purview of the committee that is proposed to be constituted to reduce power tariff for industrial units in Vidarbha and Marathwada to promote industrial development in those regions.

The delegation told the Governor that the steel industry in Wada employs one lakh workers and generates a sales tax of Rs 350 crore for the state.

It pointed out that electricity constitutes 70 per cent of the raw material cost in steel manufacturing.

Members of the delegation told the Governor that due to non-availability of higher voltage and poor infrastructure in Wada, the cost of power per unit was higher than the per unit cost in Vidarbha and Marathwada.

They told the Governor that the electricity duty of 9.3 per cent is levied on these units. Mentioning that Wada faces "tremendous competition" from Daman, Silvassa and Gujarat, which offer lower electricity tariffs, the delegation said if state power utility's tariff reduction was not granted, all the industrial units will be shut.

The Governor assured the delegation to look into the matter.