Raipur. When governments give any concession, discount or subsidy to any industry, their main objective is to increase production and the ultimate benefit is that the goods are available to the general public at cheaper rates, but in Chhattisgarh, the opposite has happened in the last 4 years. If we look at the data of the last 5 years, a very contradictory picture is seen in this matter. Steel producers increased production but instead of decreasing, the prices kept increasing. In the year 2018-19, 100 million tons were produced in the whole country and the rate was Rs 33,833 per ton, which increased to Rs 53,036 per ton in the year 2022-23.
This interesting story is especially relevant in the context of Chhattisgarh because the then state government played a key role in increasing the profit margin of steel industrialists. The state of Chhattisgarh is famous for the fact that 30 percent of the country’s total steel production takes place in Chhattisgarh. Chhattisgarh has the country’s highest quality iron ore mines. The general public expects that the benefits of our mines, air, water and government aid should be given to the public in the form of cheap iron. But as soon as the irregularities of the former state government come to light, people are getting surprised and worried. Chhattisgarh can be estimated to account for 30 percent of the country’s steel production figures.
It is worth noting that in India, 100 million tons were produced in the year 2017-18 while the average annual rate was Rs. 33,833 per ton. In the year 2019-20, 104 million tons were produced while the average annual rate was Rs. 34,198 per ton. In the year 2020-21, 112 million tons were produced while the average annual rate was Rs. 45,072 per ton. In the year 2021-22, 118 million tons were produced while the average annual rate was Rs. 51,089 per ton. In the year 2022-23, 125 million tons were produced while the average annual rate was Rs. 53,036 per ton. In the year 2023-24, 142 million tons were produced while the average annual rate was Rs. 50,109 per ton.
It is clear from these figures that in the tariff order issued suddenly and surprisingly in Chhattisgarh in the year 2021-22, the load factor discount was increased from a maximum of 8 percent to 25 percent, whereas no such proposal was sent by the power company to the regulatory commission. Due to this, steel producers got an additional profit of about Rs 750 crore per year, but instead of reducing the steel rates in the state, it was increased by one and a half times.
