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The mini steel plants across the mineral-rich state of Chhattisgarh had stopped production from Saturday demanding concession in the power tariff for its survival.
Chhattisgarh, which once happened to be the biggest steel market in the country, had 200 mini steel plants located mostly in the industrial centres of Raipur, Bilaspur, Korba and Raigarh. Following the sinking market and raw material crises, the mini steel plants in the state were passing through one of the worst phases of crises.
"Since 2007 and 2013, in all 83 mini steel plants in the state had been closed down and the remaining had stopped production from Saturday," Chhattisgarh mini steel plants association president Ashok Surana said. Most of the units were running below 50 per cent of its production capacity, he added.
The steel makers had urged the state government to consider their demands. "If our demands were considered, we would restore production," Surana said, adding that a delegation of industrialists would soon call on the minister to discuss the issue. The decision of the association had rendered 50,000 workers jobless, he added.
Under the package, the mini association had demanded to consider relaxing the existing power tariff plant for the industries consuming power from the state-owned company. Besides reducing the demand charge, the industrialists want state government to exempt the units from six per cent electricity cess, a discount of 30 per cent on tariff for using power between 10pm and 6 am.
