Coal bar scares non-powerful players

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It is estimated that around 250 kg of charcoal is consumed to produce one tonne of paper



A staff reporter

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Calcutta

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Posted on 10.16.21, 02:22 AM


Coal India’s decision to prioritize the supply of coal to power plants over non-electric consumers has sounded the alarm with paper and aluminum downstream.

Corrugated box manufacturers anticipate further price hikes for kraft paper by paper mills, as the industry is already impacted by a 12-18% GST rate hike at the 45th Board meeting of the GST in Lucknow last month.

Members of the Federation of Indian Corrugated Box Manufacturers said the price of its main raw material – kraft paper – had already risen by around 5 rupees per kilogram in the past month and more in northern markets. . This is mainly due to an increase in raw material costs driven by rising prices of imported waste paper, rising prices of starch and other raw materials in paper mills, including coal and petroleum, freight and labor.

“With coal supply being a priority for power plants, this will create a shortage for paper mills where coal is a key raw material. We expect kraft paper prices to rise again, ”said Milan Kumar Dey, president of the Federation of Corrugated Box Manufacturers of India. It is estimated that around 250 kg of charcoal is consumed to produce one ton of paper.

“Corrugated boxes are a vital input without which no product can reach the end consumer. The industry is responding to the demand for e-commerce packaging. Therefore, the federation calls on all stakeholders, including the government, to take the necessary measures to help this industry emerge from this crisis, ”said Dey.

Aluminum fears

Aluminum factories across the country are grappling with a critical level of coal stocks and if fuel supplies are not restored immediately it would cause irrevocable collateral damage, industry organization AAI warned on Friday.

The statement comes at a time when CIL’s supply of coal to non-energy sectors has been temporarily suspended amid power plants across the country facing fuel shortages.

“Also today, the aluminum industry has received no relief from the current coal supply crisis. Indian aluminum factories are grappling with extremely low levels of coal stocks, with no recourse or alternative means to meet their electricity needs and keep the factories operational, ”said the Aluminum Association of India (AAI) .

He further warned that if the coal supply was not restored immediately, it would result in irrevocable collateral damage to these national assets.

“Any power outage at aluminum factories will result in a catastrophic impact and a complete shutdown that will require at least 12 months of recovery, resulting in the loss of jobs of more than 8 lakhs. Banks will have debt exposure of over Rs 1 lakh crore and an additional national exchange loss of Rs 90,000 crore, ”he warned in a statement.

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