Published On : Tue, Nov 29th, 2022

MSEDCL debunks reports on steel industry migrating to other states due to higher power rates

“Some people with vested interests are misleading the public by using the names of factories that closed down in the state years ago,” said Vishwas Pathak, MSEDCL’s Independent Director

Nagpur: Debunking the reports that many steel factories in Maharashtra have migrated to other states due to higher electricity rates, the MSEDCL clarified that the factories mentioned have closed their operations 8 to 23 years ago. “Some people with vested interests are misleading the public by using the names of factories that closed down in the state years ago,” said Vishwas Pathak, MSEDCL’s Independent Director recently. He also urged the Vidarbha Industries Association (VIA) to be vigilant and not allow its esteemed forum to be used by persons spreading falsehoods.

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Pathak further said that when the names of the companies mentioned in the press conference in Nagpur were verified in the records of Mahavitaran, the power supply of Ganapati Alloy and Steel Pvt Ltd was stopped in February, 2002. The functioning of that factory had ceased at that time. Moreover, power supply to Baba Mungipa Steel Industry factory was stopped in January 2013, he added.

“The electricity supply of the companies whose names have been mentioned has been stopped in the years 1999, 2002, 2003, 2006, i.e. the work of those factories in the state was stopped at that time. Bills ranging from over Rs 26 lakh to Rs 53 crore are also outstanding with these companies. By citing the names of such factories, it would be wrong to create an impression that the steel industry is now operating from outside the state,” Pathak stated. “It is true that the work of K C Ferro and Rerolling Mills Private Limited was closed in October 2021 during the Maha Vikas Aghadi Government,” he added.

The MSEDCL Director said that the reports on the present working of the companies in the state are also misleading. It is seen from the power consumption that the industries in the state are running at a faster pace instead of shutting down. In the financial year 2021-22 ending on March 31, 2022, the state had 4,53,438 industrial consumers and consumed 50,563 million units of electricity. In the last six months after March, the number of industrial consumers has increased by two thousand to 4,55,271 and they have consumed 27,712 million units of electricity in the six months ending September. 54 percent of the previous year’s electricity consumption has been consumed in six months.

“The question is how the power consumption would have increased if the industries were closing down. It is worth noting that the government of Chief Minister Eknath Shinde and Deputy Chief Minister Devendra Fadnavis has been in power for three months out of six. People have also been misled about electricity rates. While the average tariff for industrial consumers in Maharashtra appears to be Rs 8.48 per unit, the average tariff comes down to Rs 5 per unit if the various discounts available to industrial consumers are taken advantage of,” Pathak asserted.

The scheme launched in 2016 by the then Chief Minister Devendra Fadnavis Government to promote industries in Vidarbha, Marathwada and North Maharashtra as well as D and D Plus sectors provides further relief to the industries. For this, the government bears the burden of Rs 1200 crore every year, Pathak said. He urged the citizens and businessmen to take note of the facts and not fall prey to anyone’s efforts to mislead for personal interests.

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