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Business Standard
5 days ago
- Business
- Business Standard
Steel & ferro-alloy industry seeks Bengal CM's help over power tariff hike
Trade associations representing the steel and ferro-alloy sector in West Bengal have appealed to Chief Minister Mamata Banerjee for urgent intervention against what they describe as an unsustainable rise in electricity tariffs by the Damodar Valley Corporation (DVC). They fear the increased power costs could force many units to shut down. In a joint statement, the Damodar Valley Power Consumers Association, the Steel Re-Rolling Mills Association of India, and the West Bengal Sponge Iron Manufacturers Association raised concerns over the revised power rates approved by the West Bengal Electricity Regulatory Commission (WBERC) for DVC consumers. According to them, the base tariff has been fixed at Rs 4.64 per unit for the financial year 2025–26. On top of this, an additional Rs 1.36 per unit is being charged to recover arrears from 2014 to 2020, taking the effective rate to Rs 6 per unit. Further, they alleged that additional charges imposed through the Energy Charge Rate (ECR) and Monthly Variable Cost Adjustment (MVCA) amount to another 50 paise per unit. 'The net chargeable tariff to industries will now be around Rs 6.80 per unit, a 30 per cent increase, which is unaffordable and threatens the survival of our units,' the industry bodies stated in their appeal. They added, 'We are not against paying dues, but request that the Rs 1.36 per unit past arrears be recovered over the next six years to avoid tariff shocks.' Claims of disparity and demand for audit The associations also highlighted what they described as a disparity in tariffs between West Bengal and Jharkhand. They claimed DVC charges consumers in Jharkhand only Rs 4.42 per unit and demanded a forensic audit of the ECR and MVCA components. DVC, however, responded that the average cost of power in Jharkhand is Rs 5.61 per unit. The trade bodies stressed the importance of West Bengal in India's steel ecosystem. 'West Bengal is the second-largest contributor to India's secondary steel production, ferro alloys, pig iron, and pellets, and third in sponge iron output. Collapse of this sector will endanger the livelihoods of lakhs of people,' they warned. DVC rejects allegations DVC refuted the allegations, calling them 'factually inaccurate and selectively presented.' It clarified that electricity tariffs are not set by DVC itself, but by the relevant state regulators—WBERC for West Bengal and JSERC for Jharkhand. The utility explained that tariffs in West Bengal had remained mostly unchanged since 2018–19 due to legal action initiated by the same associations. The Supreme Court dismissed these cases as without merit in 2018, and only recently resolved the matter, instructing that arrears be paid within two months. 'We have complied fully with regulatory and court directions and shown great patience through years of litigation,' DVC said. It noted that it continued supplying power throughout the period, despite rising input costs. DVC also defended the current rates as 'cost-reflective and justified' and said that the WBERC had approved the revised structure. It reiterated that it cannot risk financial instability after a long period of absorbing losses. The utility added that it has proposed the creation of a common regulator to ensure uniform tariffs across states. Industry urges CM's immediate action Calling the situation a crisis, the associations urged Chief Minister Mamata Banerjee to step in and facilitate talks between WBERC and DVC.
Time of India
5 days ago
- Business
- Time of India
Steel, ferro alloys industries seek Bengal CM's help to reduce tariff hike by DVC
Kolkata: Trade bodies representing the steel and ferro alloys industry in West Bengal have sought Chief Minister Mamata Banerjee 's help to reduce the alleged steep hike in power tariffs by the Damodar Valley Corporation (DVC), which they claim would lead to a shutdown of operations. In a joint statement, the Damodar Valley Power Consumers Association, the Steel Re-Rolling Mills Association of India and the West Bengal Sponge Iron Manufacturers Association claimed that the revised power tariff approved by the West Bengal Electricity Regulatory Commission (WBERC) for DVC sets the rate at Rs 4.64 per unit for 2025-26. Additionally, an extra Rs 1.36 per unit is being charged toward arrears accumulated between 2014 and 2020, raising the effective tariff to Rs 6 per unit, it added. They also claimed that the DVC imposed extra charges through Energy Charge Rate (ECR) and Monthly Variable Cost Adjustment (MVCA), amounting to another 50 paise per unit. "The net chargeable tariff to industries will now be around Rs 6.80 per unit, a 30 per cent increase, which is unaffordable and threatens the survival of our units," the appeal stated. Highlighting regional disparities, the stakeholders pointed out that DVC only charges Rs 4.42 per unit from its consumers in Jharkhand. "We are not against paying dues, but request that the Rs 1.36 past arrears be recovered over the next six years to avoid tariff shocks," the appeal read. They also demanded a forensic audit of ECR and MVCA charges levied since 2017-18, and urged that the DVC be restrained from collecting these amounts until the audit is complete. "West Bengal is the second-largest contributor to India's secondary steel production, ferro alloys, pig iron, and pellets, and third in sponge iron output. Collapse of this sector will endanger the livelihoods of lakhs of people," the industry bodies warned. Calling it a crisis, the stakeholders urged the CM to engage with WBERC and the DVC at the earliest. "Your timely intervention will be instrumental in resolving this issue and saving these crucial industries in the state," the letter added. PTI
Mint
5 days ago
- Business
- Mint
Steel, ferro alloys industries seek Bengal CMs help to reduce tariff hike by DVC
Kolkata, May 30 (PTI) Trade bodies representing the steel and ferro alloys industry in West Bengal have sought Chief Minister Mamata Banerjee's help to reduce the steep hike in power tariffs by the Damodar Valley Corporation (DVC), which they claim would lead to a shutdown of operations. In a joint statement, the Damodar Valley Power Consumers Association, the Steel Re-Rolling Mills Association of India and the West Bengal Sponge Iron Manufacturers Association claimed that the revised power tariff approved by the West Bengal Electricity Regulatory Commission (WBERC) for DVC sets the rate at ₹ 4.64 per unit for 2025–26. Additionally, an extra ₹ 1.36 per unit is being charged toward arrears accumulated between 2014 and 2020, raising the effective tariff to ₹ 6 per unit, it added. They also claimed that the DVC imposed extra charges through Energy Charge Rate (ECR) and Monthly Variable Cost Adjustment (MVCA), amounting to another 50 paise per unit. "The net chargeable tariff to industries will now be around ₹ 6.80 per unit, a 30 per cent increase, which is unaffordable and threatens the survival of our units," the appeal stated. Highlighting regional disparities, the stakeholders pointed out that DVC only charges ₹ 4.42 per unit from its consumers in Jharkhand. "We are not against paying dues, but request that the ₹ 1.36 past arrears be recovered over the next six years to avoid tariff shocks," the appeal read. They also demanded a forensic audit of ECR and MVCA charges levied since 2017-18, and urged that the DVC be restrained from collecting these amounts until the audit is complete. "West Bengal is the second-largest contributor to India's secondary steel production, ferro alloys, pig iron, and pellets, and third in sponge iron output. Collapse of this sector will endanger the livelihoods of lakhs of people," the industry bodies warned. Calling it a crisis, the stakeholders urged the CM to engage with WBERC and the DVC at the earliest. "Your timely intervention will be instrumental in resolving this issue and saving these crucial industries in the state," the letter added.
