Indian aluminum factories are grappling with extremely low coal inventory levels, with no recourse or alternative means to meet their energy needs and keep the factories operational.

New Delhi: Coal India should immediately resume continuous supply of coal to the aluminum industry to prevent the shutdown, industry bodies demanded.

The Aluminum Association of India said the aluminum industry has not received any relief regarding the current coal supply crisis.

In the spirit of Atmanirbhar Bharat and the national coal availability commitments, the aluminum industry has planned its operation, any arrival of import coal will take 90-120 days of cycle period from purchase to consumption, therefore the sudden decision of India’s coal / coal ministry to shut down national coal supply to the aluminum industry has resulted in complete chaos.

Indian aluminum factories are grappling with extremely low coal inventory levels, with no recourse or alternative means to meet their energy needs and keep the factories operational. Failure to restore the coal supply immediately would result in irrevocable collateral damage to these national assets.

Any power failure in the aluminum plant will lead to catastrophic impact and a complete shutdown that will take at least 12 months of payback, resulting in the loss of jobs of over 8 lakh people, banks will have debt of over Rs 1 lakh crore and an additional national forex loss of Rs 90,000 crore ($ 12 billion)

The aluminum industry with total investment of Rs 1.4 crore lakh ($ 20 billion) has a capacity of 4.1 MTPA (2nd largest in the world) which creates livelihoods for more than 8 lakh people and 4,000 SMEs.

Aluminum production is a 24 * 7, 365 day continuous process industry, there is no provision to turn on and off. It is an energy-intensive industry, just to illustrate 1 ton of aluminum requires 14,500 units of continuous power, which is 15 times compared to steel (1000 units per ton) and 145 times compared to that cement (100 units per tonne).

To meet a strict and continuous demand for electricity, the aluminum industry has set up its 9,400 MW (9.4 GW) CPP captive power plants, or 34% of the country’s thermal CPP capacity) with an investment of Rs 50,000 crore.

Three-month nickel on the London Metal Exchange rose 1.2% to $ 19,445 per tonne, its highest level since September 24, while the most-traded November nickel contract on the Shanghai Futures Exchange has jumped to 146,860 yuan ($ 22,813.20) per ton, a level not seen since September 24.


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