Tuesday, July 8, 2025
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As Byrnihat factory closes, locals fear over livelihood

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SHILLONG, July 6: Following Maithan Alloys Ltd’s announcement on Monday regarding the closure of its Byrnihat unit from August 31, the Deputy Commissioner of Ri-Bhoi has assured the company’s employees and their families that their concerns are being taken seriously. The closure is reportedly due to unsustainable electricity tariffs.
A delegation of employees met the Deputy Commissioner on July 3 to voice their deep concern over the impending shutdown. In response, the Deputy Commissioner assured them that he would explore all possible avenues and engage with the appropriate authorities to seek viable solutions aimed at preventing the closure and safeguarding livelihoods.
He also expressed commitment to collaborating with all relevant stakeholders to address the ongoing electricity tariff crisis that threatens Byrnihat’s industrial ecosystem. During the meeting, discussions focused on the need to review the current electricity tariff structure, identify immediate relief measures to avert the August 31 closure, initiate dialogue
with the Meghalaya State Electricity Regulatory Commission, and explore long-term policies for sustainable industrial power supply.
The employees expressed their gratitude for the Deputy Commissioner’s responsive approach and earnest commitment. They emphasized that they are not asking for charity, but for fair and reasonable electricity tariffs that would enable industries to function sustainably while contributing to the state’s economic growth.
It may be recalled that Maithan Alloys Ltd, which set up its ferro alloys manufacturing unit at EPIP Byrnihat in 2009, is now facing imminent closure. The company, a key supplier to Steel Authority of India Limited (SAIL) plants for over 16 years, has found its operations severely impacted by escalating electricity costs — from Rs 200/KVA in 2020–21 to Rs 500/KVA in 2025–26. A 10% increase in fixed charges implemented in 2024–25, an additional surcharge of Rs 0.58/KWh from April 1, 2025, and wheeling charges of Rs 1.38/KWh have further hindered access to competitive open market power.
The potential shutdown puts the future of more than 130 employees and their families at risk. Over 120 of the workers belong to local Khasi, Garo, and other indigenous communities, and are employed across various departments.
This comes in the wake of Shyam Century’s closure in April 2025, also due to similar electricity tariff issues.
According to the company, the Byrnihat unit accounted for 6.12% of Maithan Alloys’ total turnover and 8.16% of its net worth during the 2024–25 fiscal year. The unit generated Rs 112.17 crore in revenue during the last fiscal.
Maithan Alloys currently operates three manufacturing units located in West Bengal, Meghalaya, and Andhra Pradesh.

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