NALCO faces coal scarcity as daily supplies diverted, few trains to spare

Indian state-run aluminium producer National Aluminium Co Ltd (NALCO) is facing a coal supply shortfall, due to supplies being diverted to priority electricity generation and a shortage of trains to deliver fuel to NALCO’s power plants.

Daily supplies to NALCO were falling short of requirement by at least 5,000 tonnes due to the train shortage, a senior company official told Reuters, adding that the company had coal inventories that would last only four days.

India has diverted coal supplies from the non-power sector, and put on hold plans for some fuel auctions, in a bid to ensure coal availability for utilities and tackle widespread power outages across the country.