
VIJAYAWADA: The State government on Thursday issued orders to reduce demand charges and electricity duty for ferro alloy industries, following a request from the Chairman of the Andhra Pradesh Ferro Alloys Producers Association.
The State Cabinet approved the proposal in its recent meeting, aiming to support the struggling industry and protect the livelihoods of 30,000 workers.
According to Government Order No. 27, issued on November 16, 2023, electricity duty for ferro alloy industries has been reduced to six paise per unit.
Additionally, the liability of demand charges has been slashed by 90 per cent, with industries required to pay only 10 per cent as nominal charges.
This relief which was effective for one year, from October 2023 to September 2024, revising the earlier operating period of April 2023 to March 2024.
The differential amount of demand charges, as determined by the Andhra Pradesh Electricity Regulatory Commission in its 2023-24 retail supply tariff order, will be reimbursed to Andhra Pradesh Distribution Companies (APDISCOMs) by the government as a subsidy.
Ferro alloy industries have also been instructed to procure electricity exclusively from APDISCOMs during this period.
The reduction in electricity duty and demand charges is intended to help the ferro alloy sector recover from its ongoing crisis.
The Andhra Pradesh Ferro Alloys Producers Association has urged the government to extend this relief further, from October 2024 to September 2025, to ensure the sustainability of the sector.
In consultation with stakeholders, the State government has agreed to extend the tariff and electricity duty reduction, emphasising its commitment to the growth of the ferro alloy industry and the welfare of its workers.