Coal crisis: Steel makers in Chhattisgarh look to enhance supply

Reeling from a severe coal crisis, secondary steel makers in Chhattisgarh are looking to enhance supply from the mines in the state.

The mineral-rich state contributes about 20 per cent to the country’s secondary steel output.

“The annual requirement of coal for steel industries, including captive power plants in Chhattisgarh, is around 20-22 MT. But we are getting hardly 25 per cent of the demand,”  said Anil Nachrani, member of the steel ministry’s advisory committee for secondary steel industry and president of Chhattisgarh sponge iron manufacturers association.

Chhattisgarh Chief Minister Bhupesh Baghel has come out in support of the industry and has written to Union Minister Pralhad Joshi to address the issue. “You will agree that it would be a very unfortunate decision for the state to not be able to supply coal to its small-scale industries,” Baghel said in his letter. He said South Eastern Coalfields Limited (SECL) had decided to stop the coal supply to Chhattisgarh-based steel units and other industries (except power sector) from August. 

“This would have a serious impact on the economy and the industrial facilities barring power plants had to be shut down,” the Chief Minister said.

Baghel urged Joshi to direct SECL officers to continue the  supply of coal. SECL spokesperson did not respond to the company's version on the issue.