‘Diversion to power sector hits units’
The Indian Captive Power Producers Association (ICPPA) has urged the government to normalise coal supplies to captive power plant-based industries, pointing out that if the supply of the fossil fuel was not restored immediately, it would lead to an irrevocable collateral damage of the national assets.
In its representation to the government, ICPPA highlighted the issue of insufficient coal rake supplies to CPP-based industries at levels of 40-50%.
In the last few months, the supplies meant for CPPs and industries had either been stopped or significantly curtailed for diversion to the power sector, which had led to a perilous situation for other coal-based power generators, adversely impacting their industrial operations, ICPPA said.
The decision had left the CPP-dependent industry with no time to devise mitigation plans for sustainable operations, forcing CPPs to curtail generation or come to a standstill. On an average, captive power plant-based industries are getting less than 50% of coal against secured linkages and Coal India Ltd. (CIL) auctions, the association said.
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