Coal crisis and its impact on Northeast’s industry

Share on twitter
Share on facebook
Share on linkedin
Share on whatsapp
Share on email
Share on telegram
Coal which was available last year at Rs.6500 to 7000/- Per Ton, now costs over Rs. 14000/- Per Ton. Imported Coal is even costlier and the price rise is also steeper.
Share on twitter
Share on facebook
Share on linkedin
Share on whatsapp
Share on email
Share on telegram

Coal crisis and its impact on Northeast’s industry

Guwahati: The ongoing coal supply shortage across the nation has not only impacted the power industry badly but has also been pushing all Industries in the North East region to the edge. Coal Prices have been increasing very rapidly over past few months. Besides the increase in price, availability of coal is also a big concern.

Coal Prices have increased to more than double. Coal which was available last year at Rs.6500 to 7000/- Per Ton, now costs over Rs. 14000/- Per Ton. Imported Coal is even costlier and the price rise is also steeper. Last year South African coal was at $48 to $50 Per MT is now costs over $200 per MT.

While the cost of Coal is increasing, supply even at higher prices is very scarce. CIL’s only Coal Mining location in the North East, Margherita has been under closure for over one and a half years now. The Industries in the North East were sourcing their coal from Eastern Coal Fields. But now Coal India Ltd has stopped all supplies to Industries other than the Power Industry. Left with no other option, Industries are buying Coal from the open market at very high costs.

Besides Coal, prices of Diesel have also gone up very steeply, resulting in increase of Transportation costs. All these cost pressures have collectively become a matter of survival for Industries and will soon reflect in the price of finished goods. All Industries will be forced to pass the cost on to the buyers. Industries are perplexed as to how to run their Manufacturing Units at such a high energy cost. Industry sources confirm that this increase in input costs has increased the cost of production of all major coal consuming items such as Cement, Steel, Paper, Aluminum, Brick etc. Even Tea Factories or Small Industries are facing acute shortage of Coal and this price increase is hurting them badly.

Read More : Tripura HC issues notice to conduct HIV testing for UTs and convicts

Related Post