Smelter plant production not cut due to coal crisis: Nalco
A day after the coal ministry rejected Nalco's claim of the dry fuel shortage, the Navratna PSU said it has not cut any production at its smelter plant due to "coal crisis".
The company was replying to the clarification sought by the bourses on media reports regarding coal shortage faced by Nalco.
"As on date, Nalco has not curtailed any production (aluminium metal) at smelter plant due to coal crisis," the aluminium major said in a filing to BSE today.
It is true that there is an issue of coal across the nation and IPPs (independent power plants) are being given priority over the CPPs (captive power plants) over the supply of coal, Nalco said.
Nalco is sourcing power from its CPP in order to operate its smelter plant, the PSU said adding that being a CPP, as the priority is being given to IPPs, the supply of fossil fuel is affected.
"However, to tide over the situation and to sustain the production, Nalco is augmenting power to the tune of 120 MW through import from State Grid," it said.
Rejecting Nalco's claim that three units of the PSU's CPPs were shut due to fuel shortage, the coal ministry yesterday said there is ample dispatch of coal to the PSU which has a regular supply of 4.7 MTPA dry fuel, more than the committed quantity by Coal India.
The supply of fuel to Nalco is mainly from Bharatpur opencast mines of Talcher Coalfield of MCL (Mahanadi Coalfields Ltd) - a Coal India arm, the ministry had said adding that in case of shortage of supply from this mine the balance is supplied from other opencast mines of Talcher Coalfields.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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