West Bengal Steel Production Snag Secondary to Coal Shortfall
Date : October 18, 2011
Number of Views : 97
Production in the secondary steel sector of West Bengal has fallen as heavy rains have prevented the state-run Coal India Limited (CIL) from supplying enough of the vital raw material.
The sector expects to be further hit because there will be no evacuaution of coal for this month. It is on hold to divert the raw material to power stations. These auctions are a 'lifeline' to the secondary steel sector.
Coal supply to power and steel plants are badly affected as the coal giant was unable to meet its target in the first half of the current fiscal, the output falling short by around 20 million tonnes (MT) due to adverse weather conditions.
Against the target of 196 MT, largely due to heavy rains the Maharatna company could produce only about 176 MT of coal from April to September.
Steelmakers said the coal crisis for the steel sector will aggravate further with CIL's recent decision to offer four million tonnes of additional coal by e-auction to the power sector in October.
"Plants in West Bengal are on the verge of closing down due to acute coal shortage," Kolkata-based Shyam Steel director told. "We have been particularly facing severe shortage of coal for the last six months because of short supply from the CIL."
He said the state was currently producing at half its installed capacity.
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