The ancillary units of Rashtriya Ispat Nigam Ltd (Visakhapatnam Steel Plant) are in dire straits due to the power holiday for three days a week imposed by the State Government. As a result they are unable to meet their commitments or even to pay the labour, according to V.V.N. Murthy, President of the Visakhapatnam Steel Plant Ancillary Units' Association.
He told reporters here on Monday that only 12 units or so were functioning as the ancillary units to the steel plant, supplying components and material, and the present power crisis was proving to be disastrous.
“Originally, in 1991, when the steel plant called for applications from units to supply components, nearly 1,000 units applied and the steel plant authorities had chosen only 45 units. Many of the units subsequently turned sick. At present, only 12 units or so have survived, supplying 12-13 types of products to the steel plant. I am afraid the present power crisis will finish off the rest, unless the authorities exempt small units from power holidays,” he added.
B.V. Rama Rao, President of the Federation of Andhra Pradesh Industries, said that not only RINL ancillaries but most of the small units and the bigger ones as well were in a grave crisis due to the power holidays. “These units cannot set up captive power facilities and the State Government is offering them no relief. It is unfortunate that the Government has not issued a GO on exemption of VAT on diesel purchased for captive power generation by units, even though the Chief Minister has made a clear promise,” he said.
Rao said a regional convention of industries would be held here on Tuesday to discuss the power issue and several industries' associations would participate.