Metal, cement companies face severe coal shortage as CIL arm suspends supplies

Some of India’s top metals and cement makers are facing severe coal shortages as Coal India NSE -2.66 %’s Southern Eastern Coalfield (SEC) said it will suspend supplies to prioritize dispatches to the power sector.

“We are currently sourcing power from the grids and raw materials through imports that are way costlier than sourcing from Coal India,” said an official at a leading aluminium company.

Aluminium players are currently sourcing power from the grid at ₹15-20 per unit vs ₹2-5 per unit at their captive power plants (CPP). The CPPs are fired usually with solid fuel procured from Coal India.