India: Jindal Resumes Power Supply to Raigarh, Central India Based Furnaces - Sources

SteelMint learned from market sources that Jindal Power Ltd (JPL) has resumed power supply to Raigarh (Chhattisgarh) based induction furnaces from midnight (30th Apr'19).

Earlier induction furnaces based in Jindal's industrial park in Punjipatra, Raigarh (Central India) were unable to operate plants in full fledged manner due to 50% (12 hrs) power cut by Jindal Power Ltd since the first week of Apr'19. It is to be noted that JPL is the sole source of power for these furnaces.

Sources close to this matter stated that, "there was some shortfall in power generation due to irregular supply of coal amid elections and although now it resumed ful-fledged for 24 hrs.

However Jindal may withdraw power supply if any problem occurs in near future" he added.

There are about 27-30 induction furnaces in the industrial park, which produces about 70,000-80,000 MT ingot/billet per month and is a major source of raw material for north based rolling mills.

Jindal Power Ltd, the first domestic private sector player to commission an independent power plant (IPP) in 2007, has a total installed capacity of 3,400 MW.

Current price of MS ingot in Raigarh are assessed at INR 30,500-30,600/MT, Billet at INR 31,000/MT, Sponge C-DRI at INR 19,200/MT and P-DRI at INR 18,200/MT. Prices are ex-plant & excluding 18% GST.