Mp Cement Industry In Trouble

The Madhya Pradesh cement industry that contributes 24 per cent to the national pool is in deep red thanks to the high power tariff, which industry claims highest in the world, imposed by Madhya Prdesh Electricity Board (MPEB). The board has also forced the industry to utilise its power supply on high tariff irrespective of the fact that the industry has total installed capacity of 398.15 mv of its own. The MPEB is forcing the industry to consume costly power by denying permission to install captive power generating sets and by withdrawing permission for the same. The industry has urged the government to award it arbitrary status for purchasing and utilising power so that it can prefer captive power plants to high cost State electricity board plants for power purchase. MP Chamber of Cement Manufactures president, Kamal Kishore, said, "The MPEB is blocking the industry to secure, cheaper and reliable power in absence of any clear policy on captive power generation. The high tariff, arbitrary imposition of ever increasing fuel cost recovery by MPEB every quarter, has jeopardized the cost calculations of the industry." He further, "it is unfair to force the industry to consume high cost power by denying permission to reduce contract demand even in violation of high tension power consumption agreements. We have an installed captive power generation capacity of about 400 mv." He said, "there is no development work since 1992 and hence the demand for cement is very low in the state and the per capita consumption is going down day-by-day. The state ranks fifteenth with a paltry per capita consumption rate of 74 kg against national average of 85 kg with 192 kg in Gujarat and 161 kg in Punjab not withstanding 403 kg in Chandigarh, 181 kg in Delhi and 162 kg in Goa. There is no demand from the government sector either." Pointing out other problems of the industry S B Rungta of Satana Cement Works (BCL Dvn) said, "all levies and taxes, the industry pays to Centre and State, account for 40-50 per cent of the selling prices. The industry was ready to built cement roads in lieu of paying heavy cess and taxes." Meanwhile,Chief Minister Digvijay Singh commenting on the issue said, "all the problems of cement industry are in my notice and very soon my government will be coming up with captive power plant policy."