High power rates: 36 steel units closed, 10 migrated and 6 cut production
   Date :24-Nov-2022

steel units  
Business Bureau
The regions where the steel industry is considered major source of job opportunities, witnessed closer of as many as 36 steel manufacturing units from Vidarbha, Marathwada and D+ zone in last few years, migration 10 units to other States and production cut in 6 units because of the high rates of power. Apart from this, almost all the remaining steel units in the regions are struggling to survive because of the high power tariff and other ‘unfavourable’ policies of the Government.
According to the data provided by the Vidarbha Industries Association (VIA), the electricity tariff in Maharashtra is highest in the country which makes steel production in the State economically unviable. The steel industry in Vidarbha and Marathwada areas are worst hit because of tough competition from neighboring states where cheaper tariff and industrial supportive policies are offered. The finished products from neighboring states like Madhya Pradesh, Chhattisgarh, Goa, Gujarat and even from Orrisa and Jharkhand are capturing the region’s market.
“In present situation the production cost of steel in Maharashtra is very as compared to other adjoining states because of the high electricity tariff,” said R B Goenka, Vice President of VIA.
The steel sector which is the back bone of undeveloped region of Maharashtra provides a huge revenue source in this region with a huge direct and indirect employment, this has been affected and industries are struggling for survival, he added. These industries were offered some respite by providing Vidarbha and Marathwada subsidy scheme in 2019. The scheme was valid till 2024 but the incentive has been removed by the previous Government making it made difficult for steel manufacturers. “This scheme needs to be revived for survival of industries as per the promissory note,” Goenka added.
Based on information received from various Association of Maharashtra following industries from Vidarbha, Marathwada D & D+ area of Maharashtra have reduced production or applied for reduction in contract demand or migrated to another State or have totally closed down.
Units that have reduced demand or have applied for it:- 1) SMW Ispat in Deoli MIDC in Wardha (load reduction from 38000 KVA to 10000 KVA); 2) Rajuri Steel & Alloys Pvt Ltd Mul MIDC in Chandrapur (plant is shutdown and applied load reduction of 6000 KVA to 500 KVA); 3) Shri Sidhbali Ispat Ltd in Tadali MIDC in Chandrapur, (the plant is shutdown and load reduced from 5000 KVA to 1500 KVA); 4) Bhagyalaxmi Steel Pvt Ltd. in MIDC Jalna (load reduction applied from 66000KVA to 45000 KVA); 5) Omsairam Steel Pvt Ltd. in MIDC Jalna (load reduction applied for 45000 KVA to 30000 KVA); and 6) Rajuri Steel Pvt Ltd. in MIDC Jalna (load reduction applied 13500 KVA to 10000 KVA).
Units that have migrated to other States in last few years:- 1) MI Alloy migrated to Silvasa from Wada Maharashtra; 2) Balbir Steel migrated to Vapi from Wada Maharashtra; 3) K C Ferro migrated to Silvasa from Wada and started operation under the name of Hunuman Steel and Tubes at Silvassa; 4) United Engg Works migrated to Dadra from Wada; 5) Spiderman migrated to Daman from Wada, now operating under the name of Shri Sai in Daman; 6) Baba Moogipa migrated to Rajasthan from Wada; 7) Saraliya migrated to Chhatisgadh from Nagpur; 8) Minakshi migrated to Karnatka and Indore from Nagpur; 9) Regint migrated to Silvasa from Jalna; and 10) Ganpati Ispat migrated to Silvasa.
As per the details provided by VIA, following Steel units of Vidarbha, Marathwada and D+ zone have been completely shut down in last few years:-
1) Mauli Steel Industries, Jalna; 2) Ambrish Ispat Pvt. Ltd., Jalna; 3) Nilesh Steel, Jalna; 4) Bhadra Maruti, Jalna; 5) Makranti Steel, Jalna; 6) Mahavir Metal Pvt. Ltd, Aurangabad; 7) Associate Steel, Nagpur; 8) Top Worth Urja and Metal Ltd, Nagpur; 9) Shree Sushma Ferrous, Wada; 10) Red Flame Alloys, Wada; 11) Sarvam Steel, Wada; 12) Suvikas Steel & Alloys Pvt .Ltd., Wada; 13) Asthvinayak Ispat Pvt. Ltd, Wada; 14) Jay Jyotawali Steels Pvt Ltd., Wada; 15) Goyal Allied & Steel Industries, Wada; 16) Bhuwalka Steel Industries, Wada; 17) Bhavani Ispat Pvt Ltd, Wada; 18) Shree Vaishnav Ispat Pvt Ltd., Wada; 19) Shree Vaishnav Steel Industries Pvt Ltd., Wada; 20) Vistar Metal Industries Pvt Ltd, Wada; 21) Gurunank Metal Works, Wada; 22) Hira Steel Industries, Wada; 23) Hari Steel Industries, Wada; 24) Jai Mahalaxmi Ispat Pvt. Ltd, Wada; 25) Maa Chintapurni Pvt Ltd., Wada; 26) Shree Vindhyavasini Iron India Pvt Ltd, Wada; 27) Ramdad Ispat, Nagar; 28) Plaza Steel Wada; 29) Silver Iron & Steel, Wada; 30) SDM, Wada; 31) Veer Alloys, Nagar; 32) Virat Ispat, Wada; 33) Arihant Ispat, Jalna; 34) Sola Metal, Wada; 35) Jai Jotawali, Wada; and 36) Sumo Ispat, Nagar.