Indian aluminum producer NALCO is facing coal shortage due to train shortage
BHUBANESWAR/NEW DELHI:
Indian state-run aluminum producer National Aluminum Company Limited (Nalco) is facing a shortfall in coal supplies, as the supply has been diverted to priority power generation and trains to fuel Nalco’s power plants. There is a shortage.
A senior company official told Reuters that daily supplies to Nalco were falling short of at least 5,000 tonnes due to train shortages, with the company having an inventory of coal that would last only four days.
India has cut coal supplies from the non-power sector, and halted plans to auction some of the fuel, to ensure availability of coal for utilities and deal with widespread power cuts across the country.
There is also a general shortage of trains to carry coal across the country. A government official familiar with the matter said the state-run Indian Railways saw a 16% reduction in utilities’ requirements in the first half of April.
Nalco data seen by Reuters shows that supplies by state-run Coal India under a long-term supply deal fell by 17% in 2021/22 from contracted volumes, while under another related deal the shortfall was by 75%. was more.
The lack of trains to transport coal to utilities is compounding the coal supply crisis, leading to power cuts across the country.
Mahanadi Coalfields (MCL), a Coal India arm that supplies Nalco, said it has enough coal and has asked Nalco to give priority to moving coal through conveyor belts and trucks instead of using trains. It said it is giving priority to sending coal via rail to power stations.
The NALCO official said it is not possible to increase transport by road due to “logistical challenges”.
The NALCO Officers Association, a welfare association for company executives, is taking legal action over the lack of coal supplies, alleging poor planning by the Government of India and various state bodies involved.
Advocate Subir Palit, representing NALCO Officers’ Association, said, “The unilateral priority of the Central Government and the indifferent attitude of the Railways has led to the present crisis.” In court for lack of supply
(Reporting by Sudarshan Vardhan; Editing by David Holmes)