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VSP’s sales may suffer due to power shortage

VSP’s sales may suffer due to power shortage
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TK Chand, director (commercial), of Visakhapatnam Steel Plant (VSP) informed that the shutdown of many steel rolling mills in Andhra Pradesh would affect the sale of VSP in 2012-13.

It is learnt that about two-thirds of the steel rolling mills in the state are shut while production in the remaining mills dropped by more than 50 per cent because of acute power shortage.

Consequently, VSP may not be able to sell steel worth Rs 450 crore during this fiscal, reports suggest. VSP is the largest seller of billets and rounds to the steel rerolling mills in Andhra Pradesh.

CII-Visakhapatnam is organising an international conference on steel and related activities in February in order to encourage the steel industry in the region. Chand is the President of CII-Visakhapatnam.

It may be noted that some of the steel plants producing captive power were ready to supply excess power to the state grid, but the government was imposing penalties on captive power producers on production of excess power, he said.

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