With the aluminium, steel and other captive power plant (CPP)-based industries in Odisha grappling with critically low levels of coal stock to run their CPPs due to curtailed supply, the Utkal
Chamber of Commerce and Industry (UCCI) has sought immediate
intervention of the State and Union Governments for normalisation of
coal supply to these industries.
In letters to the Union Mines Minister Pralhad Joshi, Railway Minister
Ashwini Vaishnaw, Chief Minister Naveen Patnaik, State Chief Secretary and Principal Secretary (Industries), UCCI president Brahma Mishra has solicited their support to normalise the ongoing coal crisis and for immediate resumption of coal supplies for survival of highly power-intensive industries like aluminium, steel and other CPP-based
industries.
“The coal supply to non-power sector has significantly declined by 12%
(from 61 MMT to 58 MMT) during September–February period in FY22, while supplies to power sector increased by 11% (from 248 MMT to 305 MMT). This also resulted in huge backlog of over 2,000 coal rakes, as the non-power sector is getting just 16 rakes per day, merely 5% of over 300 rakes being supplied from CIL, which is a massive diversion against the provision of Ministry of Coal auction linkage policy for allocation of coal in proportion of 75% for power and 25% for
non-power sector,” wrote Mishra, adding that “the prevailing crisis
situation has further aggravated with the recent directions of Coal
India and its subsidiaries to stop/curtail the coal supplies for
non-power sector not only through rail mode but also via roadways.”
The coal supplies for the non-power sector have been further curtailed
from 3.6 LTPD (lakh ton per day) to 2.75 LTPD which will further widen
the demand–supply gap and create a huge coal deficit for the industry,
said Mishra.