Newspaper publishers appeal to Prime Minister Modi regarding coal supply disruptions
Read more
Business Standard
business-standard.com

Newspaper publishers appeal to Prime Minister Modi regarding coal supply disruptions

The Indian Newspaper Manufacturers' Association (INMA), based in Delhi, has requested the urgent intervention of Prime Minister Narendra Modi to resolve coal supply issues faced by its members. These companies supply newsprint to publications such as The Times of India, Hindustan Times, The Hindu, Navbharat Times, and Punjab Kesari.

In a letter addressed to Prime Minister Modi, the association highlighted the serious difficulties its members are encountering in receiving timely coal supplies according to their Fuel Supply Agreements (FSAs) concluded with various subsidiaries of Coal India Limited (CIL).

The letter named subsidiaries such as Northern Coalfields (NCL), Central Coalfields (CCL), South Eastern Coalfields (SECL), and Western Coalfields (WCL). The FSAs stipulate the delivery of coal via both rail and road transport, with INMA members committing to pay premium conditions to ensure a reliable and uninterrupted supply of this critical raw material.

Despite having long-term contractual agreements, the association reported that its members continue to face significant operational problems due to irregular coal shipments and insufficient supply. They are asking for Prime Minister Modi's intervention to settle matters concerning the immediate and timely dispatch of coal wagons in accordance with the existing FSAs.

INMA specified that despite having valid long-term FSAs and paying the applicable premium for guaranteed coal supplies, its companies have not received the allocated coal wagons according to the agreed schedule. This has led to serious disruptions in production processes, forcing companies to purchase coal on the open market at exorbitant prices and use grid electricity at significantly higher costs to keep their plants running.

The association also noted that the constant shortage of coal prevents its members from operating at optimal capacity, negatively affecting production and potentially disrupting the availability of newsprint in the domestic market. Since newsprint is an essential raw material for the printing industry, production constraints could impact the timely and sufficient supply of newsprint to newspapers and other publications across the country.

The irregularity of coal wagon dispatches to the Non-Regulated Sector (NRS) has resulted in the accumulation of allocated wagons: after long delays, several wagons are dispatched within a short period. This unpredictable scheduling has created serious financial and logistical difficulties for INMA members, including issues with working capital, coal handling, storage capacity, and transportation schemes.

Furthermore, the association sought the implementation of the Cabinet Committee on Economic Affairs (CCEA) recommendation regarding the allocation and dispatch of coal in a 75:25 ratio between the energy and non-energy sectors. INMA argued that the current coal dispatch regime, where over 95 percent of coal is supplied to power plants, creates significant difficulties for non-regulated sector consumers, including its members.

In its letter, the association stated that a balanced and predictable coal distribution policy is necessary to ensure the sustainable operation of coal-dependent industries, protect domestic production potential, and maintain the stability of key industrial supply chains.

In conclusion, INMA appealed for the personal intervention of Prime Minister Modi and appropriate directives to the bodies responsible for resolving these long-standing issues as a priority. The association believes that the timely resolution of these grievances will provide necessary support to its members and prevent further production disruptions.

Popular