BS reported that the INR 1,500 crore ferro alloys industry in Andhra Pradesh, which accounts for 30% of the country’s total production, has decided to close down its operations effective April 1, if the state government went ahead with its proposed plan of hiking power tariff for the industry by around 80%

There are about 30 odd ferroalloys units in the state, producing about 250,000 tonne annually, a bulk of which is located in Visakhapatnam and Vizianagaram districts.

Mr RK Saraf president of the AP Ferro Alloys Producers Association told media persons that “We have to compete globally and cannot pass on the power cost hikes to our consumers.”

It may be noted that the AP discoms, in the latest round of revision of power costs, have proposed to hike power tariff from about INR 2.65 per unit by another INR 2 a unit, which will result in an increase in ferroalloys production costs from the existing INR 6,500 per tonne to INR 9,000 a tonne.

(Sourced from BS)