The Aluminium Association of India (AAI) has objected to Coal India Ltd’s decision to reduce supplies and railway rakes for captive power plants (CPPs), reportedly resulting in a coal crunch for the aluminium industry.
In a letter to the CMD, Coal India with copies marked to its subsidiaries and the Ministry, the association claimed the “adhoc decision without any advance notice has brought down the aluminium industry to a standstill and the industry has been left out with no time to devise any mitigation plan to continue sustainable operations.” The letter, dated 30th August, said the short notice left it no time to import coal for its requirements.
Aluminium smelting requires uninterrupted quality power supply for production met through in-house CPPs, of a total of 900 MW capacity, which have signed FSA (Fuel Supply Agreement) with CIL and its subsidiaries.
The letter claimed that any power outage for more than two hours results in freezing of molten aluminium in the pots, leading in turn to shutting down of the plant for at least six months rendering heavy losses.
AAI is seeking from CIL:
- Resumption of adequate coal supply against secured linkages for sustainable industry operations.
- Allocation of railway rakes on priority for coal dispatch to the aluminium industry.
- Allocation of coal dispatches through rakes in proportion of 75% (power) and 25% (non-power) as per a February 2016 circular of coal ministry for auction linkage.
- That no decision on stopping or curtailing secured coal supplies be taken on an adhoc basis; CPP based-industries be given prior notice of 2 to 3 months to devise mitigation plans for their coal requirement.
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