Coal shortage hurts Hindalco, Vedanta

Aluminium smelter operations of Vedanta and Hindalco are at risk of turning unviable due to a coal crunch.
 
Coal supply to the captive power plants owned by the two aluminium producers is low. Coal committed in auctions is not being delivered. Since power contributes 40-45 per cent to the smelting cost of aluminium, the companies have installed captive plants of 8,700 MW to cater to their requirements. But, the aluminium industry is struggling to meet its coal requirement due to lower despatches by rail for captive power plants.
 
According to conditions listed in its fuel supply agreements, Coal