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16 FEBRUARY 2022 AL CIRCLE

AAI seeks CIL’s sustainable coal supply assurance to the aluminium industry-owned captive power plants

EDITED BY : RUPANKAR MAJUMDER 2MINS READ

The apex body representing the entire spectrum of the Indian Aluminium Industry, the Aluminium Association of India (AAI) has solicited the mediation of the Indian state-owned coal mining and refining corporation, Coal India Limited in regards to the continuation of sustainable coal supplies and rakes for aluminium industry-owned captive power plants (CPPs) which are countering unsettlingly exhausted stockpiles of dry fuel of three to four days as compared to the stipulated level of 15 days.

AAI seeks CIL’s sustainable coal supply assurance to the aluminium industry

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On 15th February 2022, in a letter written to the Chairman of Coal India, AAI stated, “With untiring efforts of CIL and its subsidiaries, the situation of the power sector has now improved significantly with 9-10 days' stocks from as 3-4 days in August-September last year.”

The dearth of coal stock and un-interrupted supply has resulted in the worst-hit to the CPPs and the aluminium industry was the most impacted and which still pursues to grapple to get ceaseless coal supplies, resulting in a backlog of over 1,200 coal rakes, while adding that most of the available coal and rakes are being rerouted to the power sector as with a label 'priority coal supplies'.

The nation’s prosperous manufacturing sector also witnesses a possible catastrophe, if the present situation is not tackled right away and may steer to collapse of the domestic industry and associated SMEs.

Moreover, the insufficiency of raw materials and aluminium inputs to other vital sectors will lead surge in imports and loss of foreign revenue.

World Recycled aluminium market analysis

The production of metal aluminium is a continuous process, which is a power-intensive industry and requires nonstop quality power supply through in-house CPPs operating round-the-clock for 365 days and continuous coal supplies are vital. However, there are no alternative methods to meet this intense power demand.

The letter also stated, "To avoid closure of aluminium industry and save lakhs of livelihoods and SMEs, we earnestly request your kind intervention to normalise the precarious situation with the immediate resumption of coal and rakes supply for highly power-intensive aluminium industry CPPs, and earmarking at least 25-30 coal rakes per day for economically viable and sustainable industry operations.”


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EDITED BY : RUPANKAR MAJUMDER 2MINS READ

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