To assure coal supply for utilities and address widespread power outages across the country, India has diverted coal supplies from the non-power sector and placed preparations for some fuel auctions on hold.
Digital Desk: Due to supplies being redirected to priority energy generating and a scarcity of trains to bring fuel to NALCO's power plants, India's state-run aluminum producer National Aluminium Co Ltd (NALCO), is suffering a
coal supply deficit.
Due to the train deficit, daily shipments to NALCO were running short by 5,000 tonnes, a senior company official told Reuters, adding that the business's coal inventories would only last four days.
To assure coal supply for utilities and address widespread power outages across the country, India has diverted coal supplies from the non-power sector and placed preparations for some fuel auctions on hold.
In addition, there is a general scarcity of trains to transport coal around the country. According to a government official familiar with the situation, state-run Indian Railways fell 16 percent short of utility requirements in the first half of April.
According to NALCO statistics obtained by Reuters, state-run Coal India's deliveries fell 17 percent short of the stipulated quantity in 2021/22, while shortages in another connected arrangement were more than 75 percent.
A lack of trains to deliver coal to utilities is compounding a coal supply problem that has resulted in nationwide power outages.
NALCO's coal supplier, Mahanadi Coalfields (MCL), stated it had enough coal and requested NALCO prioritise delivering coal via conveyor belts and trucks rather than trains. It stated that delivering coal to power plants by rail was a top priority.
Due to "logistical challenges," a NALCO representative stated that increasing road transportation was not practicable.
The NALCO Officers' Association, a welfare organization for the company's executives, is pursuing legal action over coal supply shortages, blaming the Indian government and several state entities involved for bad planning.
"The present crisis has been triggered by the union government's lopsided prioritization and the railways' lackadaisical attitude," said Subir Palit, a lawyer representing the NALCO Officers' Association, which has taken the coal ministry, MCL, and a unit of the Indian Railways to court over supply shortages.
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