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The Aluminium Association of India (AAI) has urged the central government to immediately restart supply of coal and rakes to the aluminium industry to normalise the precarious situation due to fuel shortage. It also said the current fuel shortage has threatened the very survival of the domestic aluminium sector with risk of loss of over one million livelihoods and 5,000 SMEs (Small and Medium Enterprises) in the downstream sector.

The association has stated that despite untiring efforts to ensure continuous coal supplies, the current shortage due to stoppage/ curtailment of coal supplies and rakes has threatened the very survival of domestic aluminium industry with risk of loss of over one million livelihood and 5,000 SMEs in the downstream sector. Since August 21, the industry is getting just 50 per cent coal supplies, which has been drastically reduced to 10 per cent currently. The industry is struggling to sustain operations with alarmingly depleted coal stocks of only 1.5 to 3 days and is on the verge of stock out.

If coal shortage is not immediately addressed, the AAI said it may lead to the collapse of aluminium industry and associated SMEs. It also said this will lead to risk of livelihood for over one million local people and additional national forex loss of Rs 90,000 crore in form of imports.