Non-electricity consumers include aluminum smelters, cement manufacturers and steel plants.
State-run Coal India Ltd on Thursday said it has temporarily cut supplies to non-power customers, potentially hurting companies in other industries as India faces its worst power supply losses in years. Struggling with one.
India is the world’s second-largest coal producer with the world’s fourth-largest reserves, but increased electricity demand above pre-pandemic levels means supplies from state-run Coal India, the world’s largest coal miner, are now Not enough. The company said in a statement that it has stopped all online auction of coal for the power sector.
“This is only a temporary priority, in the interest of the nation, to deal with the situation of low coal stocks in stressed power plants and augment supply to them,” it said. Aluminum Association of India demanded immediate restoration of full supply
It said Coal India’s move is “detrimental” to the industry, which needs uninterrupted power supply. The association said in a statement on Wednesday that the power supply shutdown for more than two hours could result in huge financial loss to the companies.
It said that many aluminum plants are already operating at low capacity as their coal stock has come down from about 15 days in April to 2-3 days.
“The entire industry has been brought to a standstill and there is no time left to prepare any mitigation plan to continue with sustainable operations,” the association said, adding that coal accounts for about 40 per cent of the production cost of the industry.
India is competing with buyers such as China, the world’s biggest coal consumer, which is under pressure to increase imports amid severe power shortages.
Coal India said that Indian customers are shifting to local coal due to high global fuel prices.
India has asked power producers to import up to 10 percent of its coal needs amid fuel shortages and warned states if federal companies sell electricity on power exchanges to cash in on rising prices for their power supplies. Will stop Most of India’s 135 coal-fired power plants have fuel reserves of less than three days
.