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[Ferro-Alloys.com] In response to SOS appeal by ferroalloys industry, the State government is contemplating offering certain concessions as part of a bailout package. Highly-placed sources told The Hindu that the Cabinet Sub-Committee formed to look into the problems of crisis-hit ferroalloys industry last year has recommended offering a subsidy of Rs.1.50 per unit with some conditions. A senior official of FACOR, one of the largest ferroalloys units in the State located at Garividi in Vizianagaram district, said though there had been in-principle decision, they were waiting for GO. Representatives of the industry say that the decision will benefit them if no rider is attached to it.

The Andhra Pradesh Ferroalloys Producers’ Association had sought a discount of Rs.2.60 per unit as a special offer for at least five years to help them make a turnaround along with direction to the power distribution company not to harass them with hidden costs like fuel surcharge adjustment. Golden period The ferroalloys industry saw the golden period during 2002-12 when it attracted an investment of about Rs.2,000 crore in new units and Brownfield projects due to stable power tariff policy. However, subsequent increase in tariff crippled their function casting a huge financial burden on them. Of 35 units with a production capacity of eight lakh tonne per annum and power demand of 400 MW, 30 have shutdown their operations due to recurring losses. The industry has a direct employment of 20,000 and indirect employment of around 50,000 across the State. High power tariff impacts exports Due to exorbitant power tariff, the manufacturers have also stopped exports to South East Asia, Middle East and Europe. In a welcome development, the Andhra Pradesh Electricity Regulatory Commission has directed the power distribution companies to allow duration of contracted demand with a month’s notice without insisting on clearing pending bills. “We are waiting with bated breath the response to our genuine demands from the government. Reduction in power charges by Rs.1.50 per unit will give us respite to some extent to revive our operations,” Senior General Manager (Commercial) of Anjaneya Alloys Limited Sandeep Kumar Bairoliya said. The AP Ferroalloys Producers’ Association seeks a discount of Rs.2.60 per unit as a special offer for at least five years to help them make a turnaround. 

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• [Editor:Sophie]