Industries have expressed serious concern over high electricity tariff imposed by Jharkhand Urja Vitran Nigam (JUVNL) due to which several induction furances at Adityapur, Chandil and Dhalbhumgarh. Singhbhum Chamber of Commerce and Industry (SCCI) president Ashok Bhalotia has requested the Chief Minister to fulfill its promise of providing power subsidy to induction furnace industries that are closing shutters due to losses. He said that induction furnances were the worst hit as power is like a raw material for them.
“Over a dozen induction furnaces, along with sponge iron plants, rolling mills and ferro alloy units that require power have stopped production in Dhalbhumgarh in East Sighbhum and Seraikela Kharsawan due to high power tariff,” said an official of SCCI.
JUVNL charges Rs 5.50 per unit from induction furnaces and other industries based in the Kolhan region. But DVC, which supplies power to Ramgarh, Deoghar and several other districts charges only Rs 2.95 per unit. The industries demanded that due tariff system must be removed or else DVC should also supply here.
Ashok Bhalotia also requested CM to ask Tata Motors to give orders to local Adityapur companies.
The company that used to manufacturer around 12000 vehicles per month is now forced to manufacture around 3500 vehicles. Due to downfall in the demand, the company has curtailed its production.
Meanwhile, the Adityapur industrial area, which is one the largest industrial belts in Asia, is feeling the pinch of the slow down.
We are facing tough time because of the market slow down. The market conditions are not favourable. In place of three shifts, the (ancillary) units are operating one shift a day during the last three weeks and we do not expect any sign of improvement in the near future,” said an official of Adityapur Small Industries Association (ASIA).
It may be noted that the sprawling Adityapur Industrial Area houses 1100 units- including 11 large-scale, 64 small scale and 166 tiny industries. A few important industries that have global presence are Usha Martin Group, RSB Group, Tata Steel Growth Shop (TGS) etc., too situated in this industrial belt, situated in Seraikela-Kharsawan.
Vendors are facing perhaps their toughest challenge yet, with orders coming down to a mere trickle, even as principals such as Tata Motors have drastically cut production to tide over tough times.
