The All India Induction Furnace Association, Southern Region has sought Government immediate support contending that the steel sector industries are on the verge of closure in Telangana.

Since the lockdown, the steel industry has been reeling under huge financial burden of interest payments, fixed electricity charges and payment of salary and wages to all employees (regular/contractual/casual).

The steel industry is capital/labour/power-intensive and a substantive support from government is required to mitigate the severe effect of lockdown and allow industries to restart again smoothly. The association stated that the steel industry serves as the backbone of the economy.

While the Telangana government on April 21 through a GO mentioned that the electricity fixed charges for the lockdown period shall be deferred till May 31, 2020, without any penalty and interest, and energy charges will be billed on actuals, this alone is not a solution to the problem but mere postponement, the Association stated.

The association requested that discoms raise the bill for March/April as per the actual meter reading and demand charges proportionate to the factory working days. A complete waiver on fixed electricity charges to steel industry will cost the State exchequer a mere ₹20 crore approximately but go a long way in helping the Industries in these unprecedented times.

The steel industry association requested the government to provide interest-free installments to pay the electricity bills due in the lockdown period, reduce power tariff by 15 per cent and waiver of electricity duty of 6 paise per unit.

Dire need of relief

It cited States like Punjab and Gujarat who have come forward to the rescue of industries by waiver of minimum energy and minimum demand charges. The steel industries in Telangana provide employment to 50,000 families and contribute ₹2,000 crore towards the power bill and 2000 crore as GST annually. Lack of relief from the State government in terms of fixed electricity charges will not only push the industries towards becoming sick, but also put the livelihood of the 50,000 workers associated with them at stake apart from losing GST.

As per the directives issued by Prime Minister Narendra Modi, the industry members have been sympathetic towards employees and their concerns. The Association further said post lockdown, too, things do not look bright for the steel industry as major demand comes from infrastructure, where spending will take a hit.

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