Govt. Order On Coal Supply May Hit Non-power Sectors

Govt. Order On Coal Supply May Hit Non-power Sectors

The government’s decision to prioritise coal supply to power plants will greatly hurt other industries dependent on coal such as cement and aluminium, according to industry players who had written to Railways and Finance Minister Piyush Goyal to voice their grievances.

The Ministries of Coal, Railways, Power, and Finance held a meeting on May 17 in which they decided, given the shortage of coal with power plants, to instruct companies such as Mahanadi Coalfields Limited (MCL) to deploy rakes of coal only for power plants and not to do so for other consumers of coal. The letter to MCL, accessed by the The Hindu, says that this decision would be in force “till further directives”.

Stock position

According to data with the Central Electricity Authority, 17 power plants had super-critical (less than three days worth) of coal stocks as of May 22 while three power plants had critical (less than five days worth) of stocks. Read More

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