Maharashtra is also assisting the manganese alloy producers and has arranged NTPC power for export production to all the three units. Thus Maharashtra Elektrosmelt Limited (MEL) will get about 20 MW of power, Khandelval Ferro 17 MW for eight hours during night for export production. Universal Ferro reportedly gets NTPC power for all 24 hours as it will entirely export its production. Two steel producer exporters namely Ispat Industries Dolvi and Ispat Profiles at Pune reportedly have got about 220 MW of power for export production of steel products. The power rate is said to be around 160 paise per kwh almost half of the MSEB power.

According to executive director of MEL Jayswal, the company is likely to turnaround and earn some profit during 2000-01, due to the favourable market and cheaper power. MEL's losses during 1999-2000 are likely to be around Rs 27 crore which will render it a sick unit.

But the 20 MW of power from NTPC will save around Rs 8 crore in power cost and MEL is also to start captive power plant based on furnace gases, which is likely to save the company another Rs 5 crore. This power plant has a capacity of 4.5 MW. The power cost in Maharashtra has been going up steeply forcing closure of ferro alloy units. Power tariff which was 209 paise in 1992-93, rose to 311 paise in 1996-97, 340 paise in 1998-99 and 370 paise in 1999-2000.

During this period prices of manganese alloys remained stagnant or fell.

These falling prices of manganese alloys in the face of rising cost of power and also other raw materials like manganese ore forced the closure of units like Universal Ferro and Kandelwal Ferro and only MEL continued to produce at capacity despite its losses. But MEL like other ferro alloy producers has run up unpaid power bills and in the case of MEL the total bill is Rs 40 crore and the management wants a write off of these bills to help the unit. Whether the MSEB obliges remains to be seen, but the concessions extended to others are being demanded by MEL too.

As a long-term solution for the power costs MEL wants the state government to allow it to put up a captive power plant of 30 MW on build, own and operate basis. MEL is hopeful of roping some private party to put up the plant as it is very near to the coal mines of Western Coal fields.

The state's other ferro alloy producers are also hopeful that the MSEB will reduce the cost of power to bulk consumers by offering night power tariff concessions and also other incentives which are available to bulk consumers and thus bringing down the average power cost to Rs 300 to 320 paise per kwh. Maharashtra has the largest concentration of manganese alloys capacity which is around 2,70,000 tonne but it has been lying idle for some time due to the high power cost. With NTPC power now being available and the MSEB likely to reduce the cost of its power the state may once again emerge as the biggest producer of manganese alloy.