|
|
|
Shortage of coal supplies continues to cripple non-power sectors
|
|
|
|
Top Stories |
|
|
|
|
SME Times News Bureau | 06 Dec, 2021
The Indian Captive Power Producers Association (ICPPA) in a recent
representation to Ministry of Coal, Railways and Power, has sought
urgent support for normalizing the coal supplies to Captive Power Plant
(CPP) based industries. It has highlighted the issue of insufficient
coal rake supplies to CPP based industries at levels of 40 per cent to
50 per cent. If this is not restored immediately, it would lead to an
irrevocable collateral damage of these national assets.
In the
last few months, the supplies meant for CPPs & industries have been
either stopped or significantly curtailed for diversion of these to the
power sector, which has led to a perilous situation for other coal-based
Power Generators (CPP), adversely impacting their industrial
operations. The decision of Coal diversion, left CPP-dependent industry
with no time to devise mitigation plans for sustainable operations,
forcing CPPs to curtail generation or come to a standstill. On an
average, Captive Power Plant-based industries are getting less than 50
per cent of the coal against secured linkages and CIL auctions.
Importantly, curtailment to CPP is continuing despite Power Sector
having come out of the coal crisis.
With the coordinated efforts
of all ministries, the situation for State Power Sector has improved to
current levels of 10 days. However, the CPP industry consumers are still
getting overall coal supplies at just 40 per cent to 50 per cent levels
leaving them struggling to get uninterrupted coal supplies for
continued operations. Also, the Coal -Rake dispatch is at a much lower
levels than their requirement booked through linkage and auctions.
The
Aluminium industry operations are one of the most severely impacted
with the price being on a rise recently due to the global shortage. With
the coal crisis impacting the industry, the scarcity will lead to
further increase in rates. Being a metal of strategic importance, the
country cannot afford the shock of Aluminium shortage.
Any power
outage in Aluminium plants will lead to catastrophic impact &
complete shutdown which will take minimum 12 months of recovery,
resulting in job loss of more than 8 lakh people. Banks will have debt
exposure of over Rs 1 Lakh crore and additional national forex loss of
Rs 90,000 crore.
Aluminium production is a 24x7, 365 days
continuous process industry which is highly power intensive. To meet
stringent & continuous power demand, the industry has set up their
in-house Captive Power Plant CPPs of 9,400 MW (9.4 GW i.e., 34 per cent
of Thermal CPP capacity of the country) with an investment of Rs 50,000
crore. The industry can only meet its power requirement through CPPs for
which it requires 1.5 lakh tonnes of domestic coal daily (55 million
tonnes every year). To meet the extensive coal demand, the industry has
set up plants in the vicinity of coal bearing areas, with power plants
designed to operate on domestic coal.
Therefore, it is critical
to maintain continuous coal supplies to the Aluminium sector for
production of captive power as any shortfall will jeopardize investments
of Rs 1.4 lakh crore including debt of Rs 1 lakh crore. This shall also
cause shortage of raw material to key industries leading to increase in
Aluminium import & loss of export earnings, having an impact of $10
bn per annum (Rs 70,000 crore every year).
Keeping the above in
mind, the Indian Captive Power Producers Association has requested the
ministry's immediate intervention for normalizing 100 per cent coal
rakes supplies to CPP industry and help them to partner the economic
development of the nation.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
|
|
Daily Poll |
|
|
PM Modi's recent US visit to redefine India-US bilateral relations |
|
|
|
|
|
Commented Stories |
|
|
|
|
|
|
|
|