CII Seeks Naveen’s Intervention To Resolve Coal Shortage Faced By Odisha Industries

Bhubaneswar: The Confederation of Indian Industry (CII) has sought the intervention of chief minister Naveen Patnaik in averting a major industrial crisis in the state due to ongoing coal crisis.

In a letter to the chief minister, Manish Kharbanda, chairman, CII Odisha State Council, said the coal shortage threatens not only the Captive Power Plants (CPPs) based industries in Odisha but also other industries that form the backbone of the state’s industrial ecosystem and provide employment to lakhs of people.

Despite the efforts of the state government towards industrial  development, the CPP-based industries, which heavily depend on coal as their primary raw material, are unable to run smoothly.

Kharbanda further said the situation has worsened since August, 2021 with the CPPs getting less than 40-50% of the required coal supplies, creating a backlog of over 1500 coal rakes while most of the available coal rakes are diverted away from CPPs. As a result, the operational power plants are forced to operate at reduced power generation levels, creating a huge risk of closure of the plant.

Being a mineral rich state, Odisha holds 25% of the total coal deposit of the country. Out of 150 million ton of coal produced through Mahanadi Coalfields Limited (MCL), 65% is transferred to other states and only 35% is reserved for Odisha industries against the actual minimum requirement of 55% for local CPPs.

Such acute shortage is creating a dangerous situation for the manufacturing sector, leaving the state deprived of domestic value addition along with severe impact on the global investment.

He said several trade bodies like UCCI, MSMEs and OASME have brought the issue to the attention of the chief minister over the last month.

Kharbanda sought the chief minister’s intervention in immediate resumption of coal and rake supplies from MCL, to help meet 100% coal requirement of the CPP-based industries of Odisha. Besides saving thousands of industries, it would protect lakhs of people from the loss of employment and livelihood, he added.