BS reported that steel makers in Mandi Gobindgarh are blaming the state government for not taking concerted steps to support industry, as they have been grappling with a severe power shortage for the past few years.
AS per report, the rapid pace of infrastructure development in the country has created substantial demand for steel, but units in Mandi Gobindgarh are operating below optimal capacity for want of power.
Local industrialists said that they get power for 12 hours a day during the kharif and rabi sowing seasons and 18 hrs a day the remainder of the year, with a weekly off day throughout the year. Captive power, they said was not a viable option, as their power consumption was substantial. The steel cluster requires about 800 MW of power a year, 50% of which is met by state utilities.
Mr Ajay Goel of Nabha Steels Limited said that “Power is the most important component used in induction furnaces and steel re rolling mills, accounting for about 50% of the variable cost of production. The growing gap between the demand and supply of power over the years has put the industry in a shambles.”
Mr Amarjit Goel of Modern Steel said that “The months of June, July and August were the worst, since we could draw only 40% to 47% of our requirements.”
Mandi Gobindgarh enjoys the status of the largest supplier of different kinds of steel inputs in northern India. There are over 300 small and medium scale units that convert steel scrap into a variety of steel inputs like ingots, billets, forging quality ingots, carbon steel and structural steel. The town generates business of INR 24,000 crore annually and employs more than 150,000 people.
(Sourced from http://www.steelguru.com/news/index/2009/09/24/MTEzMTcy/Mandi_Gobindgarh_steel_mills_facing_sever_power_shortages.html)
Thursday, September 24, 2009
Mandi Gobindgarh steel mills facing sever power shortages
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