The Aluminium Association of India (AAI) has said that non-power industries, including aluminium companies, has been plagued by a protracted coal shortage for the past seven months and urged the Prime Minister's Office (PMO) to ensure on priority a supply of at least 25-30 coal rakes per day to the sector. It warned that disruptions in the aluminium sector's production will have a negative effect on India's industrial landscape.
It said the ongoing V-shaped recovery of the Indian economy could receive a severe blow due to the situation faced by the aluminium sector. It stated as the most widely used non-ferrous metal globally and a critical input for several core industries in India, any disruptions in the sector's production will undoubtedly have a negative effect across the country's industrial landscape. The continued coal shortage being faced by the country's highly power-intensive aluminium industry has now put lakhs of jobs in jeopardy.
It mentioned ‘With Coal India (CIL) continuing to give unjustifiable priority to the power sector despite improvement in coal stocks, the supplies to the non-power sector have declined by a staggering 18.2 per cent in the last few months (September 2021-January 2022) compared to the same period last year.’ It added that during the same period, coal stocks for the power sector have improved by 20 per cent. In the absence of adequate coal supply by Coal India and its subsidiaries, several aluminium plants in the country are staring at imminent closure.
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