The Alkali Manufacturers' Association of India (AMAI) said that the recent hike in coal prices will severely affect caustic soda and soda ash producing units, especially those which have their production based on captive power plants.
Most caustic soda units have installed captive power plants in order to get a regular, uninterrupted power supply at reasonable cost and the coal price-hike would affect them, the Alkali Manufacturers' Association of India said in a statement issued here today.
The coal price hike has come into effect from February 27.
"Most of these captive power plants are thermal power units based on coal. Coal India has increased the price of coal ranging from 30 per cent to more than 190 per cent, depending upon the grade used by the captive power station and this will have an impact of about Rs 4,000 per tonne of caustic production," the Association said.
The Association which represents the caustic soda and soda ash producers in the country, said that the chlor-alkali industry, especially caustic soda units, are power intensive industries with power constituting 60 per cent of the cost of production.
In the production of caustic soda, about 2,800 units are consumed for each tonne of production, it said.