Coal shortage hits aluminium makers

CHENNAI: Just days after the government decided to divert coal supplies to power plants with critically low coal stocks, the Aluminium Association of India (AAI) has written to state-run Coal India seeking the restoration of coal supply to captive power plants (CPP) powering aluminium factories.

The “ad-hoc decision” to drastically curtail supplies has “brought the industry to a standstill”, the association said. (We’ve) been left with no time to devise any mitigation plan to continue sustainable operations. Also, resorting to imports at such a short notice is not feasible,” the letter noted, stressing that the CPPs have signed fuel supply agreements with CIL for assured long term coal supplies, and, as a continuous process industry, any disruptions would lead to “severe losses and restart expenses”.