Power plants facing alarming coal shortage: Aluminium players

04 Feb 2022 CW Team

Asking for government's intervention, the Aluminium Association of India (AAI) told the media that the sector's captive power facilities are meeting "alarmingly" depleted coal stock of just three-four days as compared to the prescribed level of 15 days.

The aluminium industry has additionally made a plea to allocate at least 25-30 coal rakes per day for economically feasible and sustainable industry work.

The captive power plants (CPPs) of the aluminium industry are encountering alarmingly depleted coal stocks of just 3-4 days as compared to the prescribed level of 15 days, the AAI said in a recent letter to the coal secretary. Even though there is enhanced availability of coal, the non-availability of rakes for non-regulated sectors is a primary concern, the letter said.

It added that since August 2021, the non-regulated sector is working to obtain uninterrupted coal supplies for continued works, with supplies limited to only 40-50% of the required coal. There is a backlog of more than 6,000 coal rakes as most of the available coal and rakes are being shifted to the power sector as "priority coal supplies", the AAI said.

It also said that the power sector coal inventory situation has drastically enhanced to about 10 days from two to three days in September-October 2021.Thus, to evade closure of the aluminium industry, they earnestly request your kind intervention to normalise the precarious situation with the immediate resumption of coal and rakes supply for highly power-intensive aluminium industry CPPs.

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Also read: Aluminium industry demands reduction in custom duty on raw

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