Ann: Dividend Policy, page-51

Further problems for the ferro alloy industry in India.

Ferro alloy assn  seeks electricity tariff cut


"Visakhapatnam: The Andhra Pradesh Ferro Alloy Producers Association claimed that there has been a 50% increase in the electricity tariff in the last one year. They requested the government to roll back the newly imposed demand charges and make it a single part tariff as per prevailing practice for the last two decades. They also asked the government to restore the electricity duty to the earlier 6 paise per unit from the new levy of 100 paise. Speaking to the media here on Wednesday, chairman of the Association RK Saraf said that ferro alloys is power intensive and power price sensitive industry. “The cost of power component in ferro alloys production varies between 35 to 70%. With more than 700 MVA contracted maximum demand, the ferro alloy industry in the state is producing about 1.2 lakh tonnes of ferro alloys per month and earning ₹1,200 crore per month on which GST revenue to both governments together will be ₹216 crore per month. Foreign exchange earnings will be about ₹600 crore per month,” said Saraf.Vice-chairman PSR Raju said that with the increase in electricity duty, introduction of maximum demand charges and levy of true-up charges and FPPCA charges, the unit prices will go up to ₹7.35 per unit from the earlier ₹4.92. “This increases the cost of production of Ferro alloys like silico manganese and ferro chrome by almost ₹10,000 per tonne. If this request of producers is not considered by the government, the industry cannot survive,” said Raju.",
Read more at:
http://timesofindia.indiatimes.com/...st&utm_medium=text&utm_campaign=cppst