Newsprint makers seek PM’s intrevention over coal supply disruptions

The association flagged the diversion of coal supplies towards the power sector, claiming that more than 95% of total coal supplies were currently being allocated to power producers (Photo: Reuters).

NEW DELHI: Indian Newsprint Manufacturers’ Association (INMA) has sought Prime Minister Narendra Modi’s intervention to address persistent coal supply disruptions, alleging irregular dispatches of coal rakes by Coal India Ltd subsidiaries despite valid fuel supply agreements (FSAs).In a representation to the PM, the association said newsprint manufacturers were facing production constraints due to coal shortages, forcing them to procure the fuel from the open market and rely on grid power at high costs to keep their mills running.INMA, which represents domestic newsprint manufacturers supplying major print media houses, including The Times of India, Hindustan Times, The Hindu and Punjab Kesari, said delays in coal dispatches, followed by sudden bunching of rakes, were creating operational, logistical, storage and financial challenges for mills.The association also flagged the diversion of coal supplies towards the power sector, claiming that more than 95% of total coal supplies were currently being allocated to power producers, leaving non-regulated sector industries, including newsprint manufacturers, struggling to secure adequate supplies. It urged govt to enforce the Cabinet Committee on Economic Affairs-recommended 75:25 coal allocation ratio between the power and non-power sectors to ensure adequate supplies to manufacturing industries.Seeking immediate corrective measures, INMA asked the PMO to direct CIL and its subsidiaries, including Northern Coalfields Ltd, Central Coalfields Ltd, South Eastern Coalfields Ltd and Western Coalfields Ltd, to ensure timely, regular and evenly spaced dispatches of coal rakes in line with existing FSAs.The association warned that continued shortages could force domestic newsprint manufacturers to cut production, disrupting supplies of a key raw material to newspapers and putting financial pressure on the print media industry. It also called for a review of the existing coal dispatch pattern to ensure more predictable supplies to non-power industries.