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Due to fuel shortages and inadequate rail infrastructure, Indian aluminium companies have sought government intervention to ease coal supply shortages
.
This move has aroused widespread concern in the government and society, and aluminum companies in power-intensive industries have requested that the supply
of conventional fuel be restored in accordance with the quantity specified in the contract.
The Ahalco Association of India (AAI), which represents companies such as Hindalco, Vedanta and NALCO, the national aluminum industry, said there was a serious coal shortage following the reduction in supply and that the industry
was not notified in advance.
"The industry, which was already struggling due to lack of fuel and supplies, has come to a standstill because we are excluded and do not have time to develop any mitigation plans to continue sustainable operations," a senior AAI official said
.
The increase in production costs due to higher electricity costs and rising coal prices has reportedly further exacerbated the plight
of businesses.
The industry, which has built 9,500 megawatts of captive power plants (CPPs), now also faces a "huge threat" from increased imports, which AAI says is not cost-effective and makes plant operations economically unviable
.
Of the total Captive Power Plant (CPP) capacity of 40,000 MW, 70% of the CPP is dominated by thermal coal, and the plant's demand for coal is estimated at 190 million tons
per year.
Due to fuel shortages and inadequate rail infrastructure, Indian aluminium companies have sought government intervention to ease coal supply shortages
.
This move has aroused widespread concern in the government and society, and aluminum companies in power-intensive industries have requested that the supply
of conventional fuel be restored in accordance with the quantity specified in the contract.
The Ahalco Association of India (AAI), which represents companies such as Hindalco, Vedanta and NALCO, the national aluminum industry, said there was a serious coal shortage following the reduction in supply and that the industry
was not notified in advance.
"The industry, which was already struggling due to lack of fuel and supplies, has come to a standstill because we are excluded and do not have time to develop any mitigation plans to continue sustainable operations," a senior AAI official said
.
The increase in production costs due to higher electricity costs and rising coal prices has reportedly further exacerbated the plight
of businesses.
The industry, which has built 9,500 megawatts of captive power plants (CPPs), now also faces a "huge threat" from increased imports, which AAI says is not cost-effective and makes plant operations economically unviable
.
Of the total Captive Power Plant (CPP) capacity of 40,000 MW, 70% of the CPP is dominated by thermal coal, and the plant's demand for coal is estimated at 190 million tons
per year.
