AAI writes to PMO for resumption of coal supplies

The letter said that since August 21, the industry is getting just 50 per cent coal supplies, which has been drastically reduced to 10 per cent level currently. The industry is struggling to sustain operations with alarmingly depleted coal stocks of only 1.5 to 3 days and is on the verge of stock out.

If coal shortage is not immediately addressed, it may lead to collapse of aluminium industry and associated SMEs. This will lead to risk of livelihood for over one million local people, debt exposure of over Rs 1 lakh crore for banks and additional national forex loss of Rs 90,000 crore, the AAI said.

"In view of the above to avoid closure of aluminium industry and protect lakhs of livelihoods and thousands of SMEs, we earnestly request your kind intervention to normalise the precarious situation with immediate resumption of coal and rakes supply for highly power intensive aluminium industry CPPs for economically viable and sustainable industry operations," the letter said.

The government has declared aluminium manufacturing to be a public utility service as it is a sector of strategic importance and an essential commodity for diversified sectors crucial for nation's economy.

Aluminium industry has made investment of Rs. 1.4 lakh crore ($20 billion) to double the domestic capacity to 4.1 mtpa (2nd largest globally) and created over one million livelihoods and 5,000 SMEs.

Aluminium is a power intensive and continuous process industry with no alternative power option. One ton of aluminium production requires 14,500 units of continuous power which is around 15 times in comparison to steel (1,000 Units per ton) and 145 times as that for cement (100 units per ton).