Chhattisgarh's Steel Industry Faces Crisis as Power Tariffs Soar by 26.67%

ENA State 2024-07-10 15:02:39 Raipur, Jul 10 (KNN) In a development that threatens to undermine the competitiveness of Chhattisgarh's crucial iron and steel sector, industry representatives have raised alarm over a significant increase in electricity tariffs. The hike, which sees power costs surge from Rs. 6.00 to Rs. 7.60 per unit, has sent shockwaves through the state's steel manufacturing landscape. On Monday, a high-level delegation comprising members from the Chhattisgarh Mini Steel Plant Association, Chhattisgarh Sponge Iron Manufacturers Association, and Chhattisgarh Steel Re-rollers Association met with Chief Minister Vishnu Deo Sai in Raipur to address this pressing issue. The delegation emphasised that this substantial 26.67 per cent increase in power tariffs places Chhattisgarh's steel industry at a severe disadvantage compared to other steel-producing states, where electricity rates have remained stable. This disparity threatens to erode the state's competitive edge in the steel sector, a cornerstone of Chhattisgarh's industrial landscape. Industry insiders point out that this hike comes as a particular shock given the sector's recent history. Over the past 8-10 years, the steel industry has enjoyed various support measures, including special relief packages, subsidies, load factor incentives, and stable electricity tariffs. The sudden reversal of this supportive stance has caught many manufacturers off guard. The timing of this tariff hike is particularly concerning, as the global steel industry grapples with fluctuating demand and increasing competition. Chhattisgarh, known for its rich mineral resources and robust steel manufacturing capabilities, now faces the risk of losing its competitive advantage to neighbouring states and international rivals. In response to the industry's concerns, Chief Minister Sai has promised swift action. He assured the delegation that relevant officials would review the matter thoroughly, with a decision expected within the next four to five days. This timeline suggests the government recognises the urgency of the situation and its potential impact on the state's economy. As the steel industry awaits the government's response, there's palpable tension in Chhattisgarh's industrial corridors. The outcome of this review could have far-reaching implications not just for the steel sector, but for the state's overall industrial policy and its ability to attract and retain investments in key manufacturing sectors. (KNN Bureau) 38540 https://knnindia.co.in/news/newsdetails/state/chhattisgarhs-steel-industry-faces-crisis-as-power-tariffs-soar-by-2667 2024-07-10 15:02:39 knnindia.co.in Chhattisgarh's Steel Industry Faces Crisis as Power Tariffs Soar by 26.67%