Has any of the GMC cheer leaders ever asked themselves the question.
Why did the INDIAN ferro alloy industry started to close down?
ANSWER
Cost of power Power woes: AP ferro alloy makers cut output 50%
“The industry has already suffered huge losses. Against a capacity of about 2.5 lakh tonnes, the industry is today producing hardly 1.5 lakh tonnes." "Power constitutes 40-70 per cent of the production cost of ferro-alloys, used by the steel industries."
"(power distribution companies) have now proposed a 42 per cent increase in tariff for this sector, which would push up power cost from the present Rs 3.65 a unit to Rs 5.37 on energy charges alone."
"A Re 1 per unit hike in the power tariff pushes up the production cost by about Rs 4,000 a tonne for ferro-chrome and ferro manganese and Rs 9,000 a tonne for ferro silicon, industry players say."
The cost of power up from Rs3.65 to Rs5.37 ie equivalent to US$0.053/Kwh to US$0.078/Kwh
GMC power is double this.
GMC Price at posting:
1.0¢ Sentiment: Sell Disclosure: Not Held
