The Hindu Business Line : Kerala steel manufacturers demand continuous power supply

THE Steel Manufacturers Association of Kerala has demanded the State Government to provide uninterrupted power supply as promised in the Industrial Policy 1992 for the smooth functioning of several steel industrial units in the State.

The policy had enthused industrialists to set up production units in the State on account of the Government's promise of non-stop power supply for the first five years along with other concessions such as pre-1992 power tariff, exception of electricity duty and sales tax.

However, the Government introduced power cut during the period from 1996 to 1998 affecting the smooth running of the industry, the Association members alleged.

Highlighting the problems faced by the sector, the President of the Association, Mr P.K. Ahammed, said that the Government's assurance of continuous power supply for the new units in the initial five years was broken with the introduction of power cut. He pointed out that Kerala required about nearly 60,000 tonnes of steel per month, of which nearly 35,000 tonnes are presently manufactured in the State. Currently, there are about 60 manufacturing units in Kerala and has to depend on other States to meet the demand, he added.

There was good rainfall in the State this year and hence Electricity Board can offer power at lesser rate. This would improve the functioning of the local industry and the revenue of the State, he said.

Speaking on the occasion, Mr K. Pankajakshan, Secretary, said that the Association is also facing several problems in the smooth running of the industry due to lack of co-ordination from different Government departments.

The steel industry in the State, which is providing direct employment to 15,000 people, is generating revenue to the tune of Rs 75 crore to the State exchequer towards excise duty, sales tax and power charges.

The Association also protested against the discrimination shown in the case of private sector steel companies with regard to concessional rate of power.

Welcoming the introduction of VAT, the Association recommended imposing suitable entry tax on unlawful movements of MS ingots/billets and MS rods/bars into the State.

Induction furnaces body meet

The Steel Manufacturers Association of Kerala is hosting an All-India Induction Furnaces Association 19th AGM and conference here at Hotel Taj Malabar on Thursday.

The Kerala Governor, Mr R.L. Bhatia will inaugurate the AGM. Mr J.P. Singh, Joint Secretary, Union Steel Ministry, Mr P.H. Kurian, Director of Industries and Managing Director, KSIDC, Mr Gopal Gupta, President of AIIFA will participate in the one-day programme. Mr V.R. Subramaniam, a well known metallurgist will inaugurate the technical session and panel discussions.

This is the first time AIIFA meet is held in the State and as many as 250 delegates from different regions are expected to participate in the conference, Mr K. Pankajakshan, Chairman, Reception Committee, AIIFA, said at a press meet here on Tuesday.

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