State

DC assures support to Maithan Alloys employees

Electricity tariff forces closure of company

Shillong, July 5: The Deputy Commissioner of Ri-Bhoi District held a meeting with employees and their families from Maithan Alloys Limited, addressing their concerns regarding the company’s potential closure due to unsustainable electricity tariffs.

The deputy commissioner assured the employees that he will explore all possibilities and speak with competent authorities to find viable solutions to prevent the closure of the company and protect the livelihoods of the affected families. The DC expressed his commitment to working with relevant stakeholders to address the electricity tariff crisis that threatens the industrial ecosystem in Byrnihat.

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Maithan Alloys Limited, a pioneering ferro alloys manufacturing unit established in 2009 at EPIP Byrnihat, faces imminent closure on August 31, 2025, due to prohibitive electricity costs. The company, which has been a reliable supplier to Steel Authority of India plants for over 16 years, has seen its operational viability severely impacted.

Issues

Escalating electricity tariffs from Rs. 200/KVA in 2020-21 to Rs. 500/KVA in 2025-26

100% increase in fixed charges implemented in 2024-25

Additional surcharges of Rs. 0.58/KWh introduced from April 1, 2025

Wheeling charges of Rs. 1.38/KWh preventing access to competitive open market power

Impact of potential closure 

More than 130 employees and their families will be affected.

Over 120 local Khasi and Garo and other communities mostly locals are employed  across various departments

Children’s education will be affected with many students residing on company campus

Housing security for families living in company-provided accommodation

Community-wide economic impact affecting transportation, suppliers, and local businesses

Maithan Alloys’ corporate responsibility

Maintained operations during COVID-19 pandemic without laying off any employees

Consistent quality production meeting national standards

Environmental compliance in manufacturing processes.

Active community engagement and social responsibility initiatives

Significant contribution to Ri-Bhoi district’s industrialization and economic development

The closure threat reflects a broader crisis affecting the ferro alloy sector in Meghalaya, with Shyam Century having already closed operations in April 2025 due to similar electricity tariff issues. This pattern indicates that current tariff structures are fundamentally incompatible with industrial operations.

Following the closure plan, the deputy commissioner will engage with competent authorities to review the electricity tariff structure

He will also explore immediate relief measures to prevent the closure

He plans facilitating discussions with the Meghalaya State Electricity Regulatory Commission and will investigate possibilities for sustainable industrial power policies

The employees expressed gratitude for the Deputy Commissioner’s receptive approach and commitment to finding solutions. They stressed that they are not seeking charity but rather fair and reasonable electricity tariffs that allow industries to operate sustainably while continuing to contribute to the state’s economic growth.

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