Coal crunch stalls steel, power units in Odisha

Non-availability of adequate railway rakes has disrupted supplies of coal to industries in Odisha. Industrial units ranging from steel to aluminium and cement to power are deprived of their assured coal from Mahanadi Coalfields Ltd (MCL). 

Between January and August this year, more than two million tonnes of coal which were supposed to be transported to industries are locked up. The crisis is more pronounced at the Talcher Coalfields where 345 rakes for different categories of industrial consumers have held back 1.38 million tonnes of coal. The coal bearing area had in the period witnessed intermittent production outages.

National Aluminium Company (Nalco), Bhushan Steel, Hindalco Industries, Jindal Stainless Ltd, GMR Kamalanga, Vedanta Ltd, Emami Paper and ACC Cement, among others face a shortfall in coal supplies.

A source at MCL said, local disturbances caused disruption in coal production but the problem is being resolved. "Power plants in the eastern region are getting 110-115 per cent of their required mandated in the FSA (Fuel Supply Agreement). For power plants located in the southern states, coal despatches have not kept to their requirement as there has been a drop in output at Talcher Coalfields. But, there is no major shortage of rakes," he said.

Railway authorities could not be immediately contacted for their comments on the rake position.

"gMCL keeps on offering sufficient quantities of coal in e-auctions even though no adequate rakes are in sight. Railways officials maintain there is no shortage of wagons and there is a short supply of coal by MCL. This has led to a situation where the industries are forced to opt for coal imports”, said an industry source.
 

Apart from Talcher Coalfields, dispatches from the Lajkura open cast mines have also been hit. As many as 161 rakes are pending for core, non-core and e-auction consumers, blocking 0.64 million tonnes of coal supplies.