FERROALLOY INDUSTRY – POWERLESS IN INDIA?

Impact of power shortage :

 Power cuts reduces production – increases cost.

 Impact on domestic demand power cuts affect mini steel plants.
 Erratic and unscheduled cuts and breakdowns impacts customer
commitment and an image of poor reliability in global eyes is created.
 Inida’s rating decreases due to power crisis making global finance and
markets difficult to access.
 Rising cost impacts on ferroalloy competetiveness.

Power shortage:

 In 2012-13, the energy shortfall touched 8.7 per cent while peak shortage
reached 9 per cent.
 Overall , energy shortfall is expected to be 70,232 million units ,
resulting in a deficit of 6.7 per cent this fiscal.
 The requirement would be 10,48,533 million units whereas the
availability is pegged at 9,78,301 million units.
 Transmission constraints between northern-north eastern-eastern-western-
southern regional grid restricts flow of power.

Non-availability of thermal coal:

 Thermal coal supply by coal india severely resticted-mines not expanded

in time to take care of explosion in demand from power sector.
 Overpricing of coal and poor coal quality of coal supplied .
 Mine stoppages due to flooding etc lead to severe seasonal shortages.
 Imported coal from indonesia – rising coat and decreased availability.
 60% of power generated in india comes from burning coal .
Overdependence on thermal coal is a dangerous situation.

Other problems of the power sector

 Poor pipeline connectivity and infrastructure to harness india ‘s

abundant coal bed methane and shale gas potential.
 The giant new offshore natural gas field has delivered less fuel than
projected . India faces a shortage of natural gas.
 Hydroelectric power projects in inida’s mountainous north and northeast
regions have been slowed down by ecological, environmental and
rehabiliation controversies , coupled with public interest litigations.
 India’s nuclear power generation potential has been stymied by political
activism since the fukushima disaster in japan.
 Average transmission , distribution and consumer level losses exceeding
30% which includes auxiliary power consumption of thermal power
stations etc.

ROHAN DAS

13010693

MME – FINALYEAR