Govt nod to secondary steel companies to opt for alternate suppliers of power
JAMSHEDPUR: In a relief to recession hit industrial units in the state, the Jharkhand government on Friday gave its nod for secondary steel companies to opt for alternate power supply companies like Damodar Valley Corporation (DVC) and Jamshedpur Utility and Services Company (JUSCO) for accessing electricity at cheaper price, top officials said here on Friday.
Over 40 such steel plants have downed their shutters in the state over 38% hike in electricity tariff effective from April this year by state government’s Jharkhand Bijli Vitaran Nigam Limited (JVNL).
State government, however, had provided subsidy on power tariff earlier this month to bring down JBVNL rate to Rs 4. 94 per unit from its earlier rate of Rs 6.19 per unit for steel plants running on induction furnaces for a period of four months.
“Steel plants across the state are free to opt for DVC or Jusco to access power at a cheaper rate if they wish so. We have already provided subsidy to bring down the JBVNL rate substantially for four months to help them counter the slowdown in steel sector. As for automobile industry and its ancillaries are concerned, we hope things will improve by Diwali,” Chief Secretary D K Tiwari told the media here at
the local circuit house. He was here for to attend a Tata Steel programme.
Tata Motors plant head Vishal Badshah, however, on August 15 announced to launch BS-6 variant of vehicles by April next year, triggering hope that things will improve by September.
Adityapur Small industries Association (ASIA) president Inder Agrawal welcomed the CS’s announcement saying it would be a very pragmatic step by the government for the industry as a whole in Kolhan.
“Seraikela-Kharsawan is the only district where two agencies – JBVNL and Jusco are – already
supplying power. If the state government gives license to a third agency DVC, it will inspire competitive prices and quality which in turn will be a real booster for industry,” Agrawal said.
35 secondary steel companies, having annual production of 2 million tonnes, in Aidtyapur Industrial Area were already hit by recession in steel sector and exorbitant hike by JBVNL left them with no option but to close down.
“But a permanent solution lies in setting up of mega automobile plant, railway coach factory or heavy engineering units here to end dependence on Tata Motors. And we have requested steel ministry to consider our request,” added Agrawal.
Laghu Udhyog Baharati (LUB) president Rupesh Katriyar said this was welcome move but the state government needs to award license to DVC to supply power here for it to materialise on ground.
“Currently DVC has no authority to supply power in AIA while Jusco supplies power in limited areas and JBVNL is the major supplier. DVC supplies power in Ramgarh and Giridih. We hope government will implement it soon,” said Kartiyar.
On the other hand, Singhbhum Chamber of Commerce and Industry (SCCI) president Ashok Bhalotia has written a letter to finance minister Nirmala Sitharaman and MSME minister Nitin Gadkari requesting them to direct Tata Motors to procure all auto components from AIA-based ancillary units.
“Hundreds of auto ancillary companies in Aidtyapur Industrial Area and Jamshedpur have closed down due to slowdown in auto sector for past six months and block closure in Tata Motors. Some companies have reduced their production to 25% of capacity, retrenching over 10, 000 workers and resulting in loss to the tune of Rs 1000 crore. There is no big automobile company here other than Tata Motors,” Bhalotia has written in his letter.