The Delhi-based Indian Newsprint Manufacturers Association (INMA) has sought Prime Minister Narendra Modi's urgent intervention to resolve coal supply-related issues faced by its member companies, which supply newsprint to print media houses, including The Times of India, Hindustan Times, The Hindu, Navbharat Times and Punjab Kesari, among others.
"We wish to respectfully bring to your kind attention the serious difficulties being faced by our members in securing timely coal supplies under their respective Fuel Supply Agreements (FSAs) executed with various subsidiaries of Coal India Limited (CIL)," the association said in a letter to PM Modi.
The subsidiaries named in the letter include Northern Coalfields (NCL), Central Coalfields (CCL), South Eastern Coalfields (SECL) and Western Coalfields (WCL). The FSAs provide for coal supplies through both rail and road modes, with INMA members committing to premium terms to ensure a reliable and uninterrupted supply of the critical raw material.
"Despite these long-term contractual arrangements, our members continue to face significant operational challenges due to irregular coal dispatches and inadequate supplies," the association said, seeking PM Modi's intervention to resolve issues regarding the immediate and timely dispatch of coal rakes against existing FSAs.
INMA said that despite having valid long-term FSAs in place and paying the applicable premium for assured coal supplies, its member companies were not receiving their allocated coal rakes in accordance with the agreed schedules. This has severely disrupted their production operations and compelled them to procure coal from the open market at exorbitant prices and rely on grid power at substantially higher costs to keep their plants operational.
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"The persistent shortage of coal has prevented our members from operating their manufacturing units at optimal capacity, adversely affecting production and potentially disrupting the availability of newsprint in the domestic market. Given that newsprint is an essential input for the print media industry, continued production constraints may also affect the timely and adequate supply of newsprint to newspapers and other publications across the country," it said.
The irregularity in coal rake dispatches to non-regulated sector (NRS) consumers has also resulted in the bunching of allocated rakes, with multiple rakes being dispatched within a short span of time after prolonged delays. This erratic scheduling has created serious financial and logistical difficulties for INMA members, including challenges relating to working capital, coal handling, storage capacity and transportation arrangements, it said.
The association also sought implementation of the recommendation of the Cabinet Committee on Economic Affairs (CCEA) regarding the allocation and dispatch of coal in the ratio of 75:25 between the power sector and the non-power sector. INMA alleged that the present pattern of coal dispatches, where more than 95 per cent of the coal is being supplied to power plants, has created considerable difficulties for non-regulated sector consumers, including its members.
The association said in its letter that a balanced and predictable coal allocation policy was essential to ensure the sustained functioning of coal-dependent industries, protect domestic manufacturing capacity and maintain stability in the supply chains of essential industrial products.
"We, therefore, request your kind intervention to review the existing coal allocation and dispatch pattern and implement the CCEA-recommended 75:25 ratio between the power and non-power sectors in accordance with the applicable policy framework and relevant government decisions," the letter stated.
Urging PM Modi's personal intervention and appropriate directions to the authorities concerned to address these long-pending issues on a priority basis, INMA said the timely resolution of the grievances would provide much-needed relief to its member companies and prevent further production disruptions.