The government and industrial consumers are at loggerheads over the supply of coal

MUMBAI: The country's aluminum smelters, textile mills, sponge iron and fertilizer manufacturers are claiming that they are facing a shortage of coal.

Large quantities of coal are being diverted to power producers, leading to shortages by other consumers. On the other hand, the government is saying that there is no such problem.

In a letter to the Prime Minister, various industry associations have urged the government to ensure proportional distribution of coal among power producers and other industrial users.

More than 90% of the coal produced in the country is produced by Coal India.

According to sources in the Aluminum Association of India, the problem has arisen due to the move to prioritize the allocation of coal to power producers and reduce its imports due to high coal prices.

According to sources in the Coal Consumers Association of India, the supply of coal to industrial consumers outside the power sector has been lower than last year and the daily number of trains supplying them has come down from 12 to 12 which was 6 in August last year.

In 2021, India's coal imports fell to a nine-year low. High global prices have led to a decline in coal imports, forcing consumers to rely more on Coal India for their needs.

The government claimed in a statement that Coal India had sufficient stock to supply the non-power sector.