Coal Crisis: PM’s Intervention Sought To Save MSMEs From Closure In Odisha

Bhubaneswar: The Odisha Assembly of Small and Medium Enterprises (OASME) has sought the intervention of Prime Minister Narendra Modi to save the MSMEs dependent on coal-consuming industries from from imminent cllosure.

In a letter to the Prime Minister, the OASME said acute coal shortage not only threatens the Captive Power Plants (CPPs) based industries in Odisha but also other industries that form the backbone of the state’s MSMEs that provide provide employment to lakhs of people. The MSMEs have been struggling due to a severe coal crunch for over seven months since August, 2021.

“Though the state government has ensured uninterrupted power supply to independent power plants, the situation remains grim for the non-power industries facing a severe shortage of coal. The ancillary SMEs depending on non-power industries are on the verge of closure,” Satwik Swain, secretary general, OASME, said in the letter.

Despite repeated appeals by MSME associations, Utkal Chamber of Commerce, Association of Industrial Entrepreneurs (AIE),  Confederation of Indian Industry (CII) and OASME, there has been no respite in the ongoing problem, he said.

Being a mineral rich state, Odisha holds 25% of the total coal deposit of the country. Out of 129 million ton of coal produced through Mahanadi Coalfields Limited (MCL), 54% is transferred to other states and only 46% is reserved for Odisha industries against the actual minimum requirement of 55% for local CPPs.

“Such acute shortage of coal is creating a dangerous situation for the manufacturing sector, threatening the shutdown of MSMEs, leaving the state deprived of domestic value addition and global investment,” said Swain.

As the cost of imported coal has shot up, the coal consuming industries depend on domestically produced coal. While a few businesses have been meeting their needs through imported coal, most of the boilers, kilns and furnaces are designed to run on indigenous coal. Therefore, uninterrupted supply of indigenous coal is essential for sustenance of these plants.

Requesting the Prime Minister to intervene to normalise the situation, the OASME warned that if the crisis is not resolved immediately, it could lead to closure of nearly 5000 MSMEs, leading to loss of livelihood for lakhs of people.