After the tax concessions offered by the Chhattisgarh Government in its budget in February this year, the mini steel plants owners are now demanding a power tariff cut to make their businesses viable.
At least 95 mini steel units and 60 rolling mills were earlier closed down in the State. At least 10 per cent of them have already started production after the tax concessions was announced. However, the mini steel plant owners say the worst is not yet over as high power tariff remains their key concern to keep their plants running.
Presenting their demands during the public hearing organised by the Chhattisgarh State Electricity Regulatory Commission (CSERC), the owners of mini steel plants said they now need a special tariff package to save their plants from closing down.
They demanded a power tariff reduction to Rs3.50 per unit for power plants against the rate of Rs4.97 per unit.
The public hearing organised by the CSERC on power tariff hike at its office ended on the second day on Thursday.
About two dozens of people linked with mini power plants reached to the public hearing and put forth their demands one after another.
They said the State has 185 mini steel plants which are passing through bad phases. The prices of iron ore, the main raw material they need, had been increased during the last nine months.
Due to lack of demand, they are forced to sell their products at lower prices and as a result, mini steel plants are incurring heavy losses.
The plants which are sustaining regular losses have already disconnected power supply. The plants have been trying to survive by scaling down production by 50 per cent.
The mini steel plants which provided employment to more than 50,000 families are on the verge of closure, they said. The electricity charges are being collected from the plants which have closed down, they added.
Mini Steel Plant Association Chairman Ashok Surana demanded a concession of 15 to 30 per cent in power tariff for consumption between 10 pm to 6 am. The Commission gave a patient hearing to their grievances and assured it will do the needful to address the problems.