AAI writes to PMO for resumption of coal supplies

The Aluminium Association of India (AAI) has written to the Principal Secretary to the Prime Minister with an appeal to save the livelihood of over 1 million SMEs and urgency for immediate resumption of coal supplies for survival of domestic industry.

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.