Steel industry calls for reduction in power tariff
The HP Steel Industries Association (HPSIA) has appealed for the immediate intervention of the Chief Minister to reduce electricity tariff, citing the substantial financial burden it imposes on the industry. At present, 28 steel units operate in various industrial clusters across the state.
The government recently imposed a milk cess of 0.10 paise per unit, an environmental cess ranging from 0.02 to 0.10 paise per unit on industrial consumers and withdrew a Re 1 per unit power tariff subsidy in September 2024.
The triple-fold hike has raised the power tariff for energy-intensive industries like steel and iron to levels higher than those in states such as Uttarakhand, Haryana, Jammu and Kashmir, and Punjab, according to industry comparisons. The association, in a recent meeting with the Chief Minister in Shimla, has sought swift action to protect the steel sector, which has been a key contributor to the state’s economy and employment for over two decades.
Rajiv Singla, General Secretary of HPSIA, said the industry provides direct and indirect employment to over 1 lakh people and contributes over Rs 1,000 crore annually through various taxes, including GST and Additional Goods Tax. “For the last two decades, we have contributed to the development of the state. A crucial factor in our survival has been the reasonable electricity rates, which made industrial operations feasible,” Singla added.
However, the recent increase in electricity tariffs has threatened the viability of these units. “The steep hike jeopardises the survival of our industries and the livelihoods of thousands of families who depend on these,” pointed out another investor.
The association has requested the Chief Minister to consider the industry’s significant socio-economic contributions and revise the electricity tariff structure to ensure the sustainability of its operations.
Singla said, “Revising the tariff will not only secure the future of thousands of families but also uphold Himachal Pradesh’s reputation as an investor-friendly and progressive state.”
In addition to the tariff hike, steel manufacturers were granted 15 days to settle pending dues amounting to crores, pertaining to the Re 1 per unit increase imposed in September 2024. In Sirmaur, six units were required to pay Rs 9.52 crore and two units faced temporary power disconnections after failing to meet the payment deadline, said Darshan Saini, Superintending Engineer, Nahan. In Baddi, officials struggled to collect overdue payments and in Gol Thai, a unit had to reduce its power load months ago due to the unaffordable hike.
