Bhubaneswar, March 27 : With the aluminium, steel and another captive power plant (CPP)-based industries in Odisha grappling with critically low levels of coal stock to run their CPPs due to curtailed supply, the Utkal Chamber of Commerce and Industry Ltd (UCCI) has sought immediate intervention of the State and on Government for normalization of coal supply to these industries. In separate letters to on Mines Minister Pralhad Joshi, Railway Minister Ashwini Vaishnaw, Odisha Chief Minister Naveen Patnaik, State Chief Secretary and Principal Secretary (Industries) UCCI President Brahma Mishra requested to normalise coal supply for the survival of highly power-intensive industries like Aluminium, Steel and other CPP-based industries. Mishra said while the coal supply to the non-power sector has declined by 12 per cent from 61 MMT to 58 MMT, the supplies to the power sector increased by 11 per cent from 248 MMT to 305 MM from September to February in the Financial year 2022. This resulted in a huge backlog of over 2000 coal rakes, as the non-power sector is getting just 16 rakes per day, merely 5 per cent of over 300 rakes being supplied from CIL, Mishra said. He described it as a violation of the provision of the Coal Auction Linkage policy which provides for the allocation of coal in proportion of 75 per cent for power and 25 per cent for the non-power sector. Mishra said the ”prevailing crisis has further aggravated with the recent directions of Coal India and its subsidiaries to stop/curtail the coal supplies for Non-Power Sector not only through rail mode but also via roadways”. The coal supplies for the non-power sector have been further curtailed from 3.6 LTPD (lakh ton per day) to 2.75 LTPD which will further widen the demand-supply gap and create a huge coal deficit for the industry, said Mishra. The UCCI President said the Aluminium Industry, the largest non-power coal consumer and second-largest consumer after the power sector, requires nterrupted quality power supply through in-house CPPs operating round-the-clock throughout the year. The Aluminium industry invested over Rs 50,000 crore to set up CPPs near the coal mine pit heads, which are designed to operate on domestic coal grades from nearby mines. The coal demand for these CPPs cannot be catered with imports, and usage of imported coal is not feasible technically as well as economically. One ton of Aluminium production requires 14,500 ts of continuous power, which is 15 times more in comparison to Steel (1000 ts / MT) and 145 times as required for Cement (100 ts / MT). There are no alternative means to meet this intense power demand, as the State DISCOM’s network is also unable to cater to the high power requirement. The power requirement of Aluminium Smelters based in Odisha is 6000 MW, which is almost double the average power load of the entire Odisha, Mishra said, while stating that adequate coal supply to the Aluminium industry would reduce power import from IEX (Indian Energy Exchange Limited) and reduce dependency on Power Grid, thereby bringing down the power costs at IEX for other consumers also. “CPP based industries are highly dependent on nterrupted coal supplies which is vital for sustainable operations and cost-competitiveness of power-intensive industries vis-à-vis global players. Any production curtailment by this sector will have a cascading effect on consumption and downstream supply chain, resulting in increased prices of finished products and burden on end consumers, thereby adversely impacting the nation’s GDP growth,” said Mishra and sought the intervention of the State and on Government to normalize the situation with an immediate resumption of coal and rakes supply for highly power-intensive Aluminium industry CPPs. He suggested earmarking at least 25-30 coal rakes per day and also to enhance coal supplies through roadways for economically viable and sustainable industry operations. BD RN
