Aluminium players say captive plants facing alarmingly depleted coal stock

Seeking government's help, the aluminium industry has also made a plea to earmark at least 25-30 coal rakes per day for economically viable and sustainable industry operations

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Seeking the government's intervention, the Aluminium Association of India (AAI) has said the sector's captive power plants are facing "alarmingly" depleted coal stock of only three-four days as against the prescribed level of 15 days.

The aluminium industry has also made a plea to earmark at least 25-30 coal rakes per day for economically viable and sustainable industry operations.

"The captive power plants (CPPs) of the aluminium industry are facing alarmingly depleted coal stocks of only 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 improved availability of coal, the non-availability of rakes for non-regulated sectors is a major concern, the letter said.

It added that since August 2021, the non-regulated sector is struggling to get uninterrupted coal supplies for continued operations, with supplies limited to just 40-50 per cent of the required coal.

There is a backlog of over 6,000 coal rakes as most of the available coal and rakes are being diverted to the power sector as "priority coal supplies", the AAI stated.

It also said the power sector coal inventory situation has drastically improved to around 10 days from two-three days in September-October 2021.

"So, to avoid closure of the aluminium industry, we 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," the AAI said in the letter to the Union coal secretary.

It urged the government to earmark at least 25-30 coal rakes per day for economically viable and sustainable industry operations.