Coal Market Snapshots

>>Coal supply shortage has hit the production of aluminum companies—Vedanta and BALCO, as there was shortage of rail rakes. The companies have attributed inadequacy of rail rakes as the root cause of the supply shortage. Both the companies had already obtained coal linkages through auctions conducted by Coal India Limited.

During the Apr-Sep’17 period, Vedanta had received 0.63 MnT, a shortfall of around 57% against the contracted quantity of 1.48 MnT. Similarly, there was a shortfall of 78% during the first six months of FY18 for coal supply to Hindalco, which received 0.02 MnT against the supply of 0.89 MnT secured in the linkage auction.

The shortage in supply was an outcome of South Eastern Coalfields Limited and Mahanadi Coalfields Limited lowering supplies to 80% of the bid quantity in order to increase supply to thermal power plants.

>>The Goa Chief Minister has claimed that there will be no coal pollution in the state as he already asked the Union Ministry of Environment, Forest and Climatic Change not to allow the South West Port Limited to increase its coal handling capacity until the levels of particulate matter in the town is well within the stipulated standards.

 


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