[Ferro-Alloys.com]High power tariff and lack of support from the government are bane of the ferro-alloys units in Andhra Pradesh where 29 of the 35 units have been shutdown so far. The industry fears that if the situation does not improve, it would ring the death knell for the remaining six companies which had already scaled down their production.

Andhra Pradesh Ferro-alloys Producers’ Association (APFPA) Wednesday, urged the State government to supply power to their units on subsidy and save them. “We are on the ventilator and need government support immediately to save these units from the brink of shutting down permanently. The production had become economically unviable due to high power tariff,” said APFPA secretary and Anjaneya Alloys Limited senior general manager Sandeep Kumar Bairoliya.

Ferro-alloys is a power intensive industry and these units have been pushed into a crisis over the last two-three years. The number of units have increased from six in 2002 to 35 in 2012 as power tariff remained fairly stable during the period, touching `2.65 a unit in 2012. However, they were increased steeply subsequently, casting a shadow on the industry. Now the units under operation have only 30 per cent capacity utilisation.

The Garividi (Vizia nagaram)-based Ferro-alloys Corporation (FACOR) chief executive officer MSS Sarma, stated that the industries were not in a position to continue production at the present power tariff. According to him, the power tariff for the industry is in the range of `4.81 to `5.23 a unit, at present. The ferro-alloys industry heads are requesting the government to bring down the tariff to `2.65 a unit, to ensure that the industry survives in the State. FACOR is the oldest and one of the major ferro-alloys units in the State.

It might be recalled that Abhijit Ferro-Tech in Vizag district, one of the major units in the country, has stopped production. The industrialists fear that the remaining few units also would also meet with similar fate in the coming days, unless the State government intervenes. They pointed out that the committee of ministers constituted by the State government has investigated and submitted a report to the government but met with no response.

ASV Ferro Alloys managing director ASV Prasad said that majority of the existing six units is operating due to export compulsions or fear of declaration as NPA by the banks. Nearly 10,000 workers are dependent on these units for direct or indirect employment.(Source:newindianexpress)

• [Editor:Sophie]