Aluminium makers face coal shortage: FIMI

Aluminium makers are facing shortage of coal to run their captive power plants which has hit their refinery and smelting operations adversely, the Federation of Indian Mineral Industries (FIMI) said.

Captive power plants of aluminium makers are not getting coal even as availability of railway rakes for coal transportation is also a major problem, FIMI Secretary General R K Sharma said.

"...members from aluminium sector are facing huge shortage of coal for their captive power plants which in turn is adversely affecting their refinery and smelting operations," the body said.

The FIMI pointed that coal is usually allotted to primary aluminium smelters by Coal India Ltd (CIL) or its subsidiary through linkages by way of FSAs (fuel supply agreement).

"However, both aluminium smelters and refineries being under non-core category, the supply of coal to aluminium sector is severely affected due to priority given to core sectors by CIL," it claimed.

The industry body noted that it had earlier requested the coal secretary to include aluminium sector in the core category to ensure regular coal supplies but no relief has been given yet.

Aluminium is strategic metal which is widely used in sectors like defence, automobile, electric etc.

The industry had faced acute coal shortage in September last year due to restricted supply by CIL to non-core sectors. The industry was constraint to import coal at exorbitant price to avoid shut down of their smelter plants, it added.