Industry & Economy
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Steel
Ferro alloy makers seek higher rate of depreciation for captive power plants
Our Bureau
New Delhi
,
Sept. 13
DOMESTIC ferro alloy manufacturers are planning to approach the Government with the request to allow higher rate of depreciation for their captive power plants in order to remain viable. The producers would also ask for cheaper financing options and allotment of coal blocks.
The Chairman of the Indian Ferro Alloy Producers' Association (IFAPA), Mr P. Roy, said the industry, which provides direct and indirect employment to around 2.5 lakh people, is becoming unviable because of the high cost of power, which accounts for around 50 per cent of the production cost for ferro alloys, an essential component for steel making.
The IFAPA is holding a global ferro alloy conference in association with London-based Metal Bulletin in the Capital. This is the third ferro alloy conference in the country, which started in 2003. The IFAPA Chairman said the association has already taken up the issue informally with the Ministry of Steel and that within the next two months would present its pre-Budget memorandum, wherein it would highlight the need for cheaper power as that alone could keep the industry viable.
Currently, captive power plants run by ferro alloy makers do not get any special treatment. They are allowed a depreciation of 5.2 per cent on plant equipments, as it is for captive power plants in other industries. The industry is demanding that this rate be increased to more than 10 per cent.
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