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Coal shortage crisis in non-power sector escalates
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SME Times News Bureau | 09 Feb, 2022
At a time when the Indian economy is striving to emerge from the
setbacks inflicted by the Covid pandemic, the short supply of coal to
non-power industries including steel, cement and paper since August 2021
is steadily turning fears of massive economic losses and unemployment
into an ugly reality.
After repeated appeals by trade
and worker bodies, such as the Indian Captive Power Producers
Association (ICPPA), the Federation of Indian Mineral Industries (FIMI),
among many others, the distressed stakeholders in the non-power sector
have now resorted to agitation against the production and supply
anomalies, and Coal India Limited's (CIL) continued prioritization of
the power sector.
On Monday, over 500 Indian Youth Congress
workers organized a protest in Bilaspur, Chhattisgarh against the
continued coal shortage in the state's non-power sector. Submitting a
representation to the CMD, South Eastern Coalfields Limited (SECL),
pleading for more coal allocation within the state, the workers vowed to
escalate their stir if the situation did not improve. SECL, a
subsidiary of CIL, is contractually obligated to supply 65 million
tonnes of coal to the state's non-power sector annually. While the last
contract expired in October 2021, the execution of the new Tranche-5
contract has not taken place yet. The non-power sector of Chhattisgarh
was given an assurance by SECL that in the intervening period of
Tranche-5, coal would be supplied through auctions. However, in the last
four months, only 30 lakh tonnes of coal per month have been auctioned.
Earlier,
Sandeep Goel, Chairman, CII Chhattisgarh, in a separate representation
to Chief Minister Bhupesh Baghel, highlighted the coal shortage's likely
impact on the continued growth prospects of the state. The CPP-based
non-power sector in Chhattisgarh generates about 4000 MW of power for
which it requires a stable supply of 88,000 tonnes of coal daily.
In
his letter to the Prime Minister's Office, Indian National Trade Union
Congress (INTUC) President in Chhattisgarh, Sanjay Kumar Singh disclosed
that more than 250 CPP-based industries in the state require 32 million
tonnes of coal per year, which is only 19 per cent of the total SECL
production (165 million tonnes). However, the CPPs are getting only 40
per cent of that requirement, while the remaining 60 per cent is being
sent outside the state. Meanwhile, the Korba Truck and Trailer
Association (KTTOA) also submitted a plea to the PM, raising concerns
about the looming unemployment amongst local businesses and calling for
an immediate cessation in movement of coal from Chhattisgarh to other
states.
The recent representations come close on the heels of
similar concerns raised by industry bodies in Odisha. Despite multiple
recent representations to the PMO, CM's Office and the management of
Mahanadi Coalfields Limited (MCL), another subsidiary of CIL, there has
been no relief provided to non-power sector operators in Odisha. The
situation took a turn for the worse last week when some of the local
populace impacted by coal shortage staged a rail roko for many hours at
one of Mahanadi Coalfields' locations in Odisha, demanding that state
authorities must prioritise coal rake supplies to the local industries.
According
to the Indian Industrial Value Chain Council (IIVCC), more than 5,000
small and medium-sized enterprises (SMEs) could be staring at huge
losses and shutdowns if the present coal crisis confronting the
non-power sector is not resolved. Comprising of large manufacturers,
SMEs and ancillary industries, all of whom are dependent on coal for
sustained operations, the sector is hampered by an acute shortage of the
precious fossil fuel. This burgeoning issue has the potential to impact
lakhs of people employed in related sectors across the country, and
swallow any gains achieved in the post-pandemic economic recovery of the
country.
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As on 16 Aug, 2024 |
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