Coal shortage sparks jitters in metals sector

The captive producers said they are receiving 15-20% less than the committed quantity of the raw material

Production in the metals sector has taken a hit as the captive power plants supplying power to the sector are forced to run at 50 per cent capacity due to coal shortage.

Indian captive power producers' association said that the state-owned Coal India was not honouring the fuel supply agreements (FSA) for supplying coal. 

Captive power plants (CPPs) have an installed capacity of about 40,000 MW and require 190 million tonnes of coal annually. As much as 3.6 million tonnes of coal is pending with the Coal India. The captive producers have said that they receiving 15-20 per cent