The ‘unprecedented’ high level has made it impractical for consumers in the non-regulated sector to book supplies.
The ‘unprecedented’ high level has made it impractical for consumers in the non-regulated sector to book supplies.
The Coal Consumer Association of India (CCAI) sought the government’s intervention to provide a new lease of life to ailing industries, while expressing concern over consumers being forced to buy coal at higher prices to keep their plants running. Of.
The statement came amid power outages in some parts of the country due to fuel shortage.
“The average bid price of coal in the spot e-auction conducted recently by MCL (Mahanadi Coalfields Limited) exceeded the notified price by 800%.
“It is clear that some of the valued customers of MCL are compelled to buy coal at such a high premium only for the sustenance of their respective plants, while many industries have had to decide to be out of league in this auction due to rising bid prices, CCAI said in a recent letter to Coal Minister Pralhad Joshi.
MCL is a subsidiary of Coal India Limited.
While the quantities allocated as per the fuel supply agreement were not being supplied to industries, coal companies were successfully conducting spot e-auctions, where prices had reached ‘unprecedented’ high levels since March, leading to many non-compliances, the CCAI said. That the Regulated Area (NRS) consumers make the required quantity bookings.
The industrial sector of the country is going through a serious crisis since last September due to shortfall in supply of coal especially through rail mode. The crisis has deepened in the last few months.
CIL’s subsidiaries “have been allocating coal at trigger level (75% of monthly prescribed quantity, or MSQ) to NRS consumers under Fuel Supply Agreement (FSA) with effect from February 2022 … with production cuts and imminent closure of plants.” Even more coal crisis for industries due to,” the association said in the letter.
“Considering the ongoing coal supply shortage for NRS, which has led to imbalance and poor coal materialization in the sub-sectors, it is requested that there be an inter-plant transfer of coal within the same group company. [having] Multiple plants with different linkages may kindly be considered.”
This can facilitate plants with extremely significant coal stocks to sustain themselves by deriving some quantities from other plants with better coal stocks within the same group.