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Aluminium Association of India’s coal SOS to PMO

The current shortage due to stoppage/curtailment of coal supplies and rakes has threatened the very survival of the domestic Aluminium industry, regretted the AAI in a letter to the Principal Secretary to PM Narendra Modi.

SNS | Bhubaneswar |

The Aluminium Association of India has made a fervent appeal to the PMO to save the livelihood of over one million people and 5000 SMEs engaged in the sector by the immediate resumption of coal supplies.

The current shortage due to stoppage/curtailment of coal supplies and rakes has threatened the very survival of the domestic Aluminium industry, regretted the AAI in a letter to the Principal Secretary to PM Narendra Modi.

Aluminium Industry has made an investment of Rs. 1.4 lakh crore (Rs 20 billion) to double the domestic capacity to 4.1 mtpa and created over one million livelihoods and 5,000 SMEs.

It is a power-intensive industry as one ton of Aluminium production requires 14,500 units of continuous power which is much higher than what is required for steel or cement production.

The uninterrupted quality power can be met only through captive power plants operating round the clock, said the AAI.

Since August 21 the industry is getting just 50 per cent coal supplies, which has been drastically slashed to a 10 per cent level currently. The industry is struggling to sustain operations with alarmingly depleted coal stocks of only 1.5 – 3 days and is on the verge of stocking out.

If the coal shortage is not immediately addressed, it may lead to the collapse of the Aluminium industry and associated SMEs, stated the AAI.

The situation is precarious and immediate resumption of coal supplies have to be made to save livelihood and SMEs, pleaded the AAI.