The Hindu Business Line : Ferro alloys body plea for lower power tariff

WITH cross-subsidisation of power tariffs posing a serious problem for the domestic ferro alloys industry, the Indian Ferro Alloys Producers Association (IFAPA) has urged the Government to make the power available to industry at internationally comparable tariff.

The association has asked the Government to make the wheeling charges uniform as prescribed by the Central Power Ministry for all the State electricity boards for NTPC power, at a cost of five per cent of NTPC tariff. It also sought a cut in import duty on raw materials to five per cent from ten per cent.

Addressing an international symposium here on Monday, the ferro alloys association Chairman, Mr P. Roy, said the Government should also take up with WTO the issue of anti-dumping duty on export of ferro alloys to the US and other countries.

The Government must supply power to the ferro alloys manufacturing units at generation cost, while adding reasonable wheeling charges. According to Mr Roy, these power tariff benefits would enable the industry to compete better in the global markets and also increase exports to over Rs 1,000 crore from the current level of around Rs 500 crore.

"The of cross-subsidisation of power tariffs in our country has become a serious problem for the ferro alloys manufacturers since we pay Rs 2.25 to Rs 2.50 per unit to the transmission companies, while the global competitors are getting power at less than Rs 1.50 per unit," Mr Roy said.

The IFAPA Secretary General, Mr T.S. Sundaresan, urged the Government to create a level playing field by ensuring supply of power at globally competitive rates. Though the Electricity Act 2003 encouraged ferro alloy producers to go in for captive power plants, he said the capital required for establishing power plants was prohibitively expensive.

The Andhra Pradesh Principal Secretary, Industries, Mr K.V. Rao, said the States such as AP and Orissa have already taken suitable steps to reduce the power tariff. Stating that West Bengal was also taking up necessary steps in this direction, he hoped that other States would follow suit.

On the issue of customs duty on ferro alloys, he urged the Centre to look into the matter and continue to maintain the duty at 25 per cent. This was also possible by supply of power at international comparable tariff, Mr Rao said.

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