Coal shortage in India leads to soaring costs for steel producers

A coal shortage in India has led to soaring costs for steel producers as they compete with other industrial consumers for supply.
 
Mills are paying more than four times the normal costs for procuring coal from e-auctions and from mines, according to V.R. Sharma, managing director at Jindal Steel & Power Ltd. Still, there has been no impact on production at most primary steel producers yet as they have adequate supplies and are unlikely to curtail output, he said.
 
India, which relies on coal for about 70% of electricity generation, is grappling with a shortage after a jump