Tuwairqi Steel Mils Ltd. Currently, one of the biggest steel plants — tested for running at full capacity in May 2013 —stands idle. Top company executives say it will switch to an ‘exit strategy’ if the government fails to decide in its favour this month.
The company has waited for the decision for 10 months since September 2013, when it was forced to shut down its plant because of the hike in the feedstock gas price, which, it says, rendered its operations commercially unviable.
The company is demanding feedstock gas at Rs123/mmbtu — a rate at which it is provided to 11 fertiliser plants that also use natural gas as a raw material. It cites provisions of a 2004 MOU signed between investors and the government to support its case of concessionary tariff. The prevalent industrial tariff rate is Rs588 (Rs488 sale price + Rs100 GIDC).
