Fall in steel market demand gives jitters to state SMEs

The impact of slow down in the steel market in Chhattisgarh has given a big ‘shock’ to the small and medium entrepreneurs (SMEs) in the state. For, most of the units have failed to pay the electricity bill.

Chhattisgarh Chief Minister Raman Singh, who also holds the portfolio of energy department, informed in the state legislative assembly that 87 industries in the state had failed to pay the electricity bill. The dues on these industries, mostly SMEs, are more than Rs 5 lakh on each, he added.

Of the industries include state-run National Mineral Development Corporation (NMDC), which is due to pay about Rs 11 lakh for the power consumed in its Kirandul facility. The Century Cement is also among the units in the list as the company is due to pay about Rs 25 lakh against the power consumed.

Most of the industries on which electricity bill of more than Rs 5 lakh is due for recovery are from the Raipur industrial areas. Of the 87 units, 38 industries are in the industrial areas located in and around the Chhattisgarh capital city.

The Small and medium enterprises (SMEs) in Chhattisgarh are passing through worst ever crises. On one hand the escalating price of raw materials has forced the small entrepreneurs to cut down the production, on the other hand the market for Chhattisgarh’s steel is fast sinking in the country.

Singh informed that power supply to 60 industrial units had been disconnected while process of recovery from other units was in progress. But most of the SMEs in the state are not in a position to pay the dues following shut down in the production.

According to the industrialists, electricity bill was now proving a big burden for them at a time when production had either been stopped or cut down to half. A few industries had even applied for converting the high tension connection to low tension in a move to cut down the electricity.