Rates of scrap fall

LUDHIANA: The rates of scrap, the raw material used in furnace and rolling mills across the state fell down by 50 paisa per kg as the consumption decreased on Wednesday after the recent imposition of three-day a week power cut on furnace and rolling industry by the Punjab State Electricity Board (PSEB).
According to reports from Mandi Gobindgarh, the hub of induction industry in state, the rates of both the qualities of scrap; old scrap and melting scrap has fallen by 50 paisa.
Anand, a scrap dealer from Mandi Gobindgarh informed, ���The old scrap that was earlier priced at Rs 18 per kilogramme has now fallen to Rs 17.5 per kg. Similarly, the rates of melting scrap has fallen to Rs 19.50 from Rs 20 per kg.���
Another industrialist, Parveen Garg, said, ���Each unit has a capacity to use 50 to 75 tonne of scrap a day. With approximately 80 furnace mills and many more rolling mills keeping shut three days in a week the decrease in consumption is huge.��� Garg rued that the induction industry was already working for five days a week. Earlier, the PSEB had fixed two days a week power cut for the industry. Now, with the reduction in working days, that have been reduced to mere four, the labour engaged in it would shift to other industries, fear industrialists.
���No labourer can afford to take three offs in a week. Naturally, they would migrate where work is,��� said Garg.
KK Garg, president of the Induction Furnace Association of North India said, ���We don���t have an option. Our fault is that we had set up units here, where government cannot even ensure regular power supply.���
He informed that most of the industry is concentrated in the two cities ofLudhiana and Mandi Gobindgarh.
Interestingly, whenever there is power shortage in the state and PSEB adopts some corrective measures to decrease power consumption, the induction industry tops the list of industries that come under immediate scanning.
Earlier too, in June, the PSEB had asked furnace and rolling mills to close down for a week. Later, again the industry was asked to observe 12 hours cut a day.