PTI reported that steel and ferroalloy units in West Bengal have alleged that their plants are becoming uncompetitive due to sudden rise in power tariff by DVC as these entities started regulating production by 30-40% to manage cost. DVC Power Consumers of West Bengal President Mr Subhas Chandra Agarwalla said “The tariff of Damodar Valley Corporation is now INR 6.5 per unit in West Bengal, which is higher by INR 2 than that in neighbouring Jharkhand. The sudden rise in tariff on two accounts- arrear collection for three years and impact of imported coal meant for blending as per a government directive are hurting these companies. The cost of steel making in Bengal is higher by INR 2,000 per tonne and around INR 10,000 per tonne for ferroalloys due to the jump in power tariff. Our products are getting uncompetitive in the market when we compare with Jharkhand. These units are on the verge of closure.”Steel Re-Rolling Mills Association Chairman Mr Vivek Adukia added “Already 34 of 135 units of the body have declared that they would reduce power consumption by 30-40% from 1 October as production would get regulated in the wake of the uncompetitive power tariff. Apart from the high tariff of INR 6.5 a unit, DVC had earlier sent us notice to recover an arrear of INR 1,500 crore linked to a period from 2017-18 to 2019-20.”Situated in the Damodar river valley, the steel companies, mostly micro, small and medium enterprises, are concentrated in Asansol–Durgapur region in Paschim Burdwan district, Barjora and Mejia in Bankura and Sarbari area in Purulia. Around 50,000 workers are dependent on these units. DVC is the main electricity provider for these steel and ferroalloy units in the region.
PTI reported that steel and ferroalloy units in West Bengal have alleged that their plants are becoming uncompetitive due to sudden rise in power tariff by DVC as these entities started regulating production by 30-40% to manage cost. DVC Power Consumers of West Bengal President Mr Subhas Chandra Agarwalla said “The tariff of Damodar Valley Corporation is now INR 6.5 per unit in West Bengal, which is higher by INR 2 than that in neighbouring Jharkhand. The sudden rise in tariff on two accounts- arrear collection for three years and impact of imported coal meant for blending as per a government directive are hurting these companies. The cost of steel making in Bengal is higher by INR 2,000 per tonne and around INR 10,000 per tonne for ferroalloys due to the jump in power tariff. Our products are getting uncompetitive in the market when we compare with Jharkhand. These units are on the verge of closure.”Steel Re-Rolling Mills Association Chairman Mr Vivek Adukia added “Already 34 of 135 units of the body have declared that they would reduce power consumption by 30-40% from 1 October as production would get regulated in the wake of the uncompetitive power tariff. Apart from the high tariff of INR 6.5 a unit, DVC had earlier sent us notice to recover an arrear of INR 1,500 crore linked to a period from 2017-18 to 2019-20.”Situated in the Damodar river valley, the steel companies, mostly micro, small and medium enterprises, are concentrated in Asansol–Durgapur region in Paschim Burdwan district, Barjora and Mejia in Bankura and Sarbari area in Purulia. Around 50,000 workers are dependent on these units. DVC is the main electricity provider for these steel and ferroalloy units in the region.
