FIMI asks Centre to normalise coal rake supplies to non-regulated sector on 'urgent basis'

Miners' body FIMI has urged the government to normalise supply of coal rakes to the non-regulated sector on 'urgent basis' while pointing out that any production curtailment by this sector would have cascading effect on consumption and downstream supply chain.

In a letter to the government, the Federation of Indian Mineral Industries (FIMI) said that prevailing coal crises in the country is making a big dent on business continuity and profitability of many industries dependent on domestic coal mainly the non-regulated sector (NRS) viz. Aluminium, steel, cement and other metal industries.

Coal India (CIL) in its recent communication advised Indian Railways to enhance the rakes supplies of 296 rakes per day exclusively to the power sector while in the month of November, total loading of rakes by the PSU was 272 rakes per day for both power and non-power sector put together.

"Such an advice will further put NRS consumers in immensely precarious situation as NRS sector will practically not receive even minimum coal rakes for its sustained operations. Normal demand for coal by NRS is 50 rakes per day," the letter said.

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The NRS sector has played a very important role in achieving V shaped economic recovery.

"Any production curtailment by this sector will have cascading effect on consumption and downstream supply chain, thereby adversely impacting the nation's GDP growth. Moreover, such a situation will also put inflationary pressure in domestic market besides non-competitiveness of our products in global markets," it said.

"In view of the above backdrop, we earnestly request your kind support for advising Coal India and Railway Board to normalise the coal rakes supplies," it added.