Supply of dry fuel to the non-power sector is regulated, not stopped: Coal India

On 17th September 2021, the Indian state-run coal exploitation and refining company, Coal India Limited (CIL)  explicated that supply of the dry fossil fuel to the non-power sector like aluminium, steel, etc. has been diminished, but not completely ceased, as professed by some sectors.

As reported by a senior official of CIL, the course of action has been taken to consummate emergency demands for power plants as the country encounters a coal crisis.

The CIL official added: “We are regulating supply to meet the sudden jump in demand of coal from the power sector but have not stopped it to non-power consumers. Our daily supplies are more than 2 lakh tonnes to non-power industries against the normal supply of around 3 lakh tonnes.”

The Indian manufacturers from various sectors proclaimed unpleasant influence on their production anticipated to the distressed supply of coal. However, aluminium, steel, cement are the vital non-power sector of the nation that consumes a huge amount of coal.

“Coal India is meeting the supply target given by the government to power producers, but there has been a little dip due to the festival holidays”, the officials said.

“Regulating supply to non-power users will stop once the stock level of the critical power plants reaches seven days. The government is taking all measures to ensure that power generation is not affected with a minimum hurdle to other industries.”

CIL’s subsidiary, South Eastern Coalfields Limited (SECL) has reportedly suspended supplies to non-power consumers on an interim basis.

An official of SECL stated: “Supplies are regulated to prioritise the power sector and more railway rakes are needed to take coal there. Non-power sector users are encouraged to take coal through roads.”

It also needs to be notified that subsidiaries cannot decide to regulate supply, while to cover up this crisis, the E-auction of coal has is paused.

Pralhad Joshi, Union Coal Minister said: “The government is making every effort to meet the coal demand of power producers, and stressed that steps are being taken to ramp up the dry-fuel supply to 2 million tonnes per day, from the current overall dispatch of 1.95 million tonnes.”