MANDI GOBINDGARH - Steel making units in this “steel hub”, already hit by the global slowdown, are now struggling to cope with another problem - restricted power supply.
The Punjab State Electricity Board (PSEB) has slapped steel makers located here with a week-long ban on operating furnaces, citing power shortage.
Steel makers told IANS many units had to stop operations due to the ban that came into force June 25.
“Our business has stopped for a week as we cannot run furnaces and roll steel. It’s quite frustrating,” said Dinesh Gupta, a steel maker.
“It’s sheer discrimination and PSEB officials are quite adamant. They have segregated only the steel industry and imposed the ban on us,” said Gupta, also an office-bearer of the Patiala Chamber of Industries.
Added Jai Parkash Goyal, managing director of the city-based Bhawani Industries: “We are already reeling under power shortage and now this ban would certainly ruin many units here. On one side they are giving free power to certain sectors and on the other imposing such bans.”
Many units, he said, have supply contracts with multinational companies. “We are afraid of losing a huge chunk of our business.”
PSEB officials defended the ban saying they had to ensure “at least eight-hour” uninterrupted power supply to farmers hit by the delay in the arrival of the monsoon.
“Paddy crops are in trouble. So we have to ensure at least eight-hour power supply in the fields to run tubewells,” said a senior PSEB official.
The ban is expected to be lifted July 2, as the government hopes the monsoon would hit the state by that time.
There are around 450 steel units in Mandi Gobindgarh, some 60 km from Chandigarh, together producing nearly 25,000 tonnes of steel every day, or about 70 percent of the state’s total output.
Mahesh Singla, another steel unit owner, said the ban on power usage was a “twin blow” as the steel industry is already reeling under the slowdown.
“Due to the meltdown, demand for steel from our major clients in the automobile and real estate sectors has declined considerably,” he said.
Steel makers say prices have already been slashed by 50 percent on account of falling demand.
“Many units have already shifted to other states like Himachal Pradesh where the government is offering special subsidies and discounts to the industry,” Singla said.
Rajnish Raj, another entrepreneur from the city, said bans on power usage would not solve the real problem.
“This time they have imposed a ban for one week. If there’s no rain after this period, what will PSEB do? Will they extend the ban for one month or more than that?”
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