News

Coal crisis started affecting industries, Coal India stopped supply of such companies

The coal crisis in the country is deepening. Many units of thermal power plants have been closed in many states including Maharashtra and Punjab. Meanwhile, Coal India Limited on Thursday said that it has stopped supplying coal to non-power customers. This has directly impacted those companies, which are engaged in non-power business. Coal India has said that India is battling one of its worst power supply losses in the last few years.

According to the news agency Reuters, India is the world’s second largest coal producer with the world’s fourth largest reserves. The world’s largest coal mining company, Coal India, is no longer supplying enough, after the demand for electricity increased even more than before the Corona pandemic. The company said in a statement that it has stopped online auction of coal for sectors other than the power sector.

Aluminum Association of India raised questions

With regard to stopping the auction, Coal India has said that it is only a temporary priority, in the interest of the nation, to deal with the situation of low stock of coal in power plants and to increase the supply to them. The Aluminum Association of India demanded immediate resumption of supply as before. It said Coal India’s move is “detrimental” to the industry, which needs uninterrupted power supply.

Heavy loss to companies due to power supply shutdown

The association said in a statement on Wednesday that the power supply shutdown for more than two hours could result in huge financial loss to the companies. It said that many aluminum plants are already operating at low capacity as their coal stock has come down from about 15 days in April to 2-3 days.

Non power generation companies do not have any plan

The association said that they were left with no time to formulate a plan to continue with the permanent operations. Coal contributes about 40 per cent to the cost of production of the industry. At the same time, regarding the coal crisis in the country, Coal India has said that due to the increased cost of coal abroad, Indian companies have become dependent on local coal.

.

Show More

Related Articles

Leave a Reply

Back to top button
Share via
Copy link