Steel units to close from today

LUDHIANA, July 22: Agitated over unjust and arbitrary' decision of the Punjab State Electricity Board to increase power tariff and unres...

LUDHIANA, July 22: Agitated over unjust and arbitrary8217; decision of the Punjab State Electricity Board to increase power tariff and unresponsive attitude of the state government towards vehemant protests by all sections of the consumers, the entire steel indutry including arc furnace units and induction furnace units all over the state have decided to close down indefinitely from July 23.

This was announced by Inder Mohan Singh Grewal, chairman Arc Furnace Association while addressing a news conference here last night. The closure would result in a loss of around Rs 70 crore per month to the PSEB besides creating mass unrest among industrial workers and heavy production losses in engineering industry due to non-availability of steel.

Grewal disclosed that almost 75 per cent of the power available with the PSEB did not generate any revenue. Apart from 43.9 per cent power supplied free to the farming sector, the transmission losses and theft of electricity accounted for another 30 per cent. Thus, the board had to cover its cost of power generation, overheads and other expenses from 25 per cent of the power that was billed.

The furnace units, he maintained, were not in a position to bear the additional financial burden nor could the hefty increase be passed on to the buyers which would add up to Rs 900 per metric tonne.

R.P.Bhatia, regional chairman North, Steel Rerolling Mills Association of India, Tek Chand Aggarwal, president Induction Furnace Association, Punjab and Amarjeet Goyal, chairman, Steel Furnace Association of India, who were present at the occasion pleaded for withdrawal of the hike in power rates.

The adamant attitude of the government would prove disastrous because the steel industry, already at a locational disadvantage in comparison to many other states would be rendered uncom petitive and ruined.

V.P.Chopara, president, Federation of Association of Small Industries of India observed that the hike would threaten the very survival of industry which was already hit by severe recessionary trends and dwindling exports.

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Rather than upward revision of tariff, the government should have asked the PSEB to improve its efficiency and resort to better financial management, he added.