Chhattisgarh, India's third state in production, contributes approximately 12% of the country's crude steel production, 10% of pellet production, and 20% of sponge iron production.
According to local news, stakeholders from various associations have highlighted the impact of the 26% increase in electricity prices, which currently stands at INR 7.60 per unit (USD 0.09 per unit). This sudden increase, unlike stable rates in other steel-producing states, poses a threat to the steel competitiveness of the state, which contributes significantly to India's steel production.
A delegation representing these unions held talks with the Chief Minister to address the situation. He noted that such a tariff hike affects the industry along with stagnant domestic steel demand, which worsens during the monsoon season. The sector, which operates with 50-60% reduced capacities, faced increasing pressures. The delegation reminded the Chief Minister of the previous support packages and stable tariff regimes that have kept the sector afloat over the last decade.
It was assured that the matter would be thoroughly examined by the relevant authorities and a decision would be taken in the coming days. This development underscores the state's ongoing efforts to maintain its important role in India's steel production in the face of economic challenges and sector-specific concerns.
Comments
No comment yet.