ROURKELA: In a setback to industrialisation, around 70 induction furnace (IF) units, including 60 from Sundargarh district, across Orissa have pulled the shutters down indefinitely since Wednesday over ‘arbitrary’ power tariff hike.
With the State Government showing no signs of urgency to restore normalcy, the situation would somewhat cripple the local economy and aggravate the unemployment problem.
The second mass closure comes close on the heels of another such production shutdown in May on the same issue. Assurance corrective measures, however, never came.
Industry sources said the tribal-dominated Sundargarh district has been the major victim with 60 such units threatening to upset direct employment of around 15,000 and indirect employment of another 20,000. It is learnt, the IF units are inter-linked to sponge iron plants and rolling mills. If the stir went on for long, it would deal a telling blow to the iron and steel sector. The IF units produce around 1.40 lakh tonnes of mild iron every month.
Describing the power tariff hike as ‘arbitrary’, Chairman of Utkal IF Association (UIFA) Santosh Pareek said with the hidden charges it comes to around ` 4 a unit. Under the present circumstances it is no longer feasible to operate the units, he added.
Industry sources came down heavily on the power utility WESCO, which they claimed has become ‘blood sucker’.
Rourkela Chamber of Commerce and Industry (RCCI) president Subrata Patnaik said Chief Minister Naveen Patnaik and other authorities concerned have been apprised of the looming crisis. Seeking direct intervention of the CM, he said a sustainable conducive environment is required for survival of thousands of employees and the industries.
The UIFA had apprised the CM of the issue during his recent visit. Naveen had asked Power Minister Atanu Sabyasachi Nayak to look into the matter, but to no avail.