Power Struggle: Steel Industry in West Bengal Reels Under Tariff Hike

Trade bodies representing West Bengal's steel and ferro-alloy industry are appealing to Chief Minister Mamata Banerjee to intervene in what they describe as a crippling rise in power tariffs by Damodar Valley Corporation (DVC). The industry groups argue that the hike could result in the closure of several facilities.

DVC, however, dismissed the complaints as factually incorrect. The Damodar Valley Power Consumers Association, the Steel Re-Rolling Mills Association of India, and the West Bengal Sponge Iron Manufacturers Association jointly stated that the West Bengal Electricity Regulatory Commission approved a power tariff of Rs 4.64 per unit for 2025-26. An additional charge of Rs 1.36 per unit for arrears between 2014 and 2020 raises the effective rate to Rs 6 per unit, they added.

The associations allege further cost increases through additional charges like the Energy Charge Rate and Monthly Variable Cost Adjustment, bringing the total to approximately Rs 6.80 per unit. Calling the situation a crisis, they say such rates endanger their operations, urging the Chief Minister for immediate action.

(With inputs from agencies.)