Steel, Ferro Alloys Industries Seek Bengal CM's Help to Reduce Tariff Hike By DVC

Trade bodies representing the steel and ferro alloys industry in West Bengal have sought Chief Minister Mamata Banerjee’s help to reduce the alleged steep hike in power tariffs by the Damodar Valley Corporation (DVC), which they claim would lead to a shutdown of operations.

In a joint statement, the Damodar Valley Power Consumers Association, the Steel Re-Rolling Mills Association of India and the West Bengal Sponge Iron Manufacturers Association claimed that the revised power tariff approved by the West Bengal Electricity Regulatory Commission (WBERC) for DVC sets the rate at Rs 4.64 per unit for 2025–26.

Additionally, an extra Rs 1.36 per unit is being charged toward arrears accumulated between 2014 and 2020, raising the effective tariff to Rs 6 per unit, it added.

They also claimed that the DVC imposed extra charges through Energy Charge Rate (ECR) and Monthly Variable Cost Adjustment (MVCA), amounting to another 50 paise per unit.

"The net chargeable tariff to industries will now be around Rs 6.80 per unit, a 30 per cent increase, which is unaffordable and threatens the survival of our units," the appeal stated.

Highlighting regional disparities, the stakeholders pointed out that DVC only charges Rs 4.42 per unit from its consumers in Jharkhand.

"We are not against paying dues, but request that the Rs 1.36 past arrears be recovered over the next six years to avoid tariff shocks," the appeal read.

They also demanded a forensic audit of ECR and MVCA charges levied since 2017-18, and urged that the DVC be restrained from collecting these amounts until the audit is complete.

"West Bengal is the second-largest contributor to India's secondary steel production, ferro alloys, pig iron, and pellets, and third in sponge iron output. Collapse of this sector will endanger the livelihoods of lakhs of people," the industry bodies warned.

Calling it a crisis, the stakeholders urged the CM to engage with WBERC and the DVC at the earliest.

"Your timely intervention will be instrumental in resolving this issue and saving these crucial industries in the state," the letter added.