The Steel Manufacturers Association of Maharashtra has sought restoration of power subsidies first given by the Mr Devendra Fadnavis government in 2019 to boost the ailing sector in some parts of the state. In 2019, the then BJP-led government had started supply of power at Rs 5 per unit for steel units in Marathwada, Vidarbha and Khandesh, but this relief was withdrawn on 23 June 2022, SMAM President Mr Yogesh Mandhani said “This scrapping of subsidy led to a drastic fall in industrial growth and production. Now, neighbouring states like Chhattisgarh and Madhya Pradesh provide electricity at INR 5.25 per unit, while it is INR 8 per unit in Maharashtra.” Nagpur’s Hitavada that as many as 36 steel manufacturing units have closed, 10 units migrated to other states & 6 units have cut production in Vidarbha, Marathwada and D+ zone in Maharashtra in last few years because of the high rates of power and that almost all the remaining steel units are struggling to survive The report cited data from Vidarbha Industries Association as saying that the electricity tariff in Maharashtra is highest in the country which makes steel production in the state economically unviable. VIA said “The steel industry in Vidarbha and Marathwada areas are worst hit because of tough competition from neighboring states where cheaper tariff and industrial supportive policies are offered. The finished products from neighboring states like Madhya Pradesh, Chhattisgarh, Goa, Gujarat and even from Orrisa and Jharkhand are capturing the region’s market.” These industries were offered some respite by providing Vidarbha and Marathwada subsidy scheme in 2019. The scheme was valid till 2024 but the incentive has been removed by the previous Government making it made difficult for steel manufacturers.
The Steel Manufacturers Association of Maharashtra has sought restoration of power subsidies first given by the Mr Devendra Fadnavis government in 2019 to boost the ailing sector in some parts of the state. In 2019, the then BJP-led government had started supply of power at Rs 5 per unit for steel units in Marathwada, Vidarbha and Khandesh, but this relief was withdrawn on 23 June 2022, SMAM President Mr Yogesh Mandhani said “This scrapping of subsidy led to a drastic fall in industrial growth and production. Now, neighbouring states like Chhattisgarh and Madhya Pradesh provide electricity at INR 5.25 per unit, while it is INR 8 per unit in Maharashtra.” Nagpur’s Hitavada that as many as 36 steel manufacturing units have closed, 10 units migrated to other states & 6 units have cut production in Vidarbha, Marathwada and D+ zone in Maharashtra in last few years because of the high rates of power and that almost all the remaining steel units are struggling to survive The report cited data from Vidarbha Industries Association as saying that the electricity tariff in Maharashtra is highest in the country which makes steel production in the state economically unviable. VIA said “The steel industry in Vidarbha and Marathwada areas are worst hit because of tough competition from neighboring states where cheaper tariff and industrial supportive policies are offered. The finished products from neighboring states like Madhya Pradesh, Chhattisgarh, Goa, Gujarat and even from Orrisa and Jharkhand are capturing the region’s market.” These industries were offered some respite by providing Vidarbha and Marathwada subsidy scheme in 2019. The scheme was valid till 2024 but the incentive has been removed by the previous Government making it made difficult for steel manufacturers.
