Tuesday 6 September 2022

Aluminium producers draw PM’s consideration to coal scarcity

The Aluminium Affiliation of India (AAI) has sought the Prime Minister’s pressing intervention for rapid resumption of “ample” coal provides to the home non-power sector. 

As per AAI, an estimated 6,233 rail rakes, representing 25 million tonnes of coal, is owed as long-pending provides to the non-power industries.

In a letter to the PMO, AAI highlighted that the challenges confronted by the non-power sector continued regardless of vital enhancements in Coal India’s (CIL) manufacturing efficiency. 

“Between April and July in FY23, CIL loved a progress of 24% in manufacturing over the earlier 12 months, which inspired a progress of 10% within the whole provide from its reserves. This led to a 21% enhance in CIL’s provides to the ability sector,” AAI stated within the letter. “Nevertheless, throughout the identical interval, provides to the non-power sector plummeted by an enormous 28%. The situation persists on account of continued prioritisation of coal provides to the ability sector, to the detriment of a number of others,” it added.  “That is despite coal shares tremendously enhancing to over 13 days for the ability sector,” it additional stated.

The home non-power sector contains metal, cement, aluminium firms that are working captive energy crops.  AAI stated its members had been struggling to safe ample provides of coal for his or her operations, with provides persevering with to plummet since August final 12 months.

AAI stated although a number of gasoline provide agreements had been already in place for assembly 100% of the necessities of the non-power sector, the general materialisation for the non-power sector had dropped to 55%, a lot beneath the set off stage of 75%, “whereas rail provides at the moment are nearly non-existent.”

“The aluminium sector is a continuous-process trade requiring a gradual provide of energy. Any extended energy interruption in an aluminium smelting operation for greater than 2 hours can result in the freezing of molten aluminium throughout the smelting pots, which takes nearly a 12 months to rectify and optimise, inflicting monumental manufacturing, value and provide disruptions,” AAI stated within the letter.

“This has led the aluminium trade to collectively arrange captive energy crops of over 9,400 MW with an funding of over ₹50,000 crore. These captive energy crops are bigger in dimension, extra environment friendly, positioned nearer to coal pit heads, and will subsequently higher utilise the coal provides from CIL,” it added within the letter. It stated forcing its members to attract energy from the grid has led to value escalation.

By- The Hindu



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