Production in the secondary steel sector of West Bengal has
fallen as heavy rains have prevented the state-run Coal India Limited (CIL)
from supplying enough of the vital raw material.
The sector expects to be further hit because there will be no e-auction of coal
for it this month. It is on hold to divert the raw material to power stations.
These auctions are a 'lifeline' to the secondary steel sector.
Coal supply to power and steel plants are badly affected as the coal giant was
unable to meet its target in the first half of the current fiscal, the output
falling short by around 20 million tonnes (MT) due to adverse weather
conditions.
Steelmakers said the coal crisis for the steel sector will aggravate further
with CIL's recent decision to offer four million tonnes of additional coal by
e-auction to the power sector in October.
“Plants in West Bengal are on the verge of closing down due to acute coal
shortage,” Kolkata-based Shyam Steel director Lalit Beriwala.
“We have been particularly facing severe shortage of coal for the last six
months because of short supply from the CIL.”
On CIL's decision to put on hold the e-auction for the month
of October, Beriwala said it will aggravate the coal crisis for steel producers
as they purchased a bulk of coal through this medium.
Leave a Reply