Rajasthan steel units shut for a week

19 December 2016

Around 45 industries affiliated to Rajasthan Steel Chamber (RSC) today began a week-long closure of production units (furnaces) against the sharp increase in cross-subsidy charges from 13 paise to Rs 1.39 and imposition of a new levy of 80 paise per unit under additional charge by Rajasthan Electricity Regulatory Commission (RERC).

The RSC had approached state Energy Minister, Energy Secretary, RERC and Discom authorities to reverse the orders, but nothing happened, said Sitaram Agarwal, president, RSC.

In the steel manufacturing sector, power accounts for 60% of the input cost and a small hike in tariff disturbs operational dynamics. In order to avoid the power from Discoms, which is priced at Rs 7.30 per unit,— steel manufacturers go for open access, which costs around Rs 3 per unit, he said.

Source – Tribune India