Electricity dues of Vizag Steel Plant mount to ₹136 crore in two months
The Hindu
The plant started facing difficulties procuring coal for power generation since the privatisation move was announced as the plant’s power generation has dropped, alleges workers’ union leader
While thousands of workers are agitating to save RINL-Visakhapatnam Steel Plant (RINL-VSP) from privatisation, the plant is hit by electricity bill arrears to the tune of ₹136.53 crore payable to the Andhra Pradesh Eastern Power Distribution Company Limited (APEPDCL)
The plant used to depend on its own power plant for electricity, and sometimes surplus power was diverted to the government power utilities for public purposes. However, the situation has completely changed since the Centre announced the privatisation move in January 2021.
The amount of power produced at the captive power plant gradually decreased, and the plant’s dependence on government power utilities, like APEPDCL, started increasing.
According to RINL-VSP sources, the total installed capacity of the captive power plant at RINL is 539MW, including a 5MW solar power plant. But, it generated only 233 MW (November 2023), 227 MW (December 2023), 245 MW (January 2024), 237 MW (February 2024) and 229 MW (March 2024). So, to meet the energy requirements for the production of steel, the plant received an average of 155 MW of electricity per month from the APEPDCL. In the month of March (till 21 March), a maximum of 165 MW of power was availed from the State discom, the sources added.
Speaking to The Hindu, RINL-VSP recognised union leader J. Ayodhyaram said, “Vizag Steel Power Plant has started facing difficulties procuring coal for power generation since the privatisation move was announced. Due to this, our plant’s power generation has dropped. Then, our steel plant had to depend on the State power utility (APEPDCL). We are blaming the governments for the present condition of the steel plant. The State and Central governments should show sympathy to this plant.”
Meanwhile, the APEPDCL sources said that the total electricity charges for the month of February 2024 was ₹94.56 crore, and ₹96.97 crore for January 2024.
“The steel plant paid us only ₹55 crore, including ₹5 crore on Thursday (March 21) for the month of January. The balance is ₹41.97 crore. The February bill dues are pending. Total dues for January and February is ₹136.53 crore,” an APEPDCL official informed The Hindu.
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