InvestorQ : Why are the aluminium companies sending an SOS to the PM on power situation?
Moii Chavate made post

Why are the aluminium companies sending an SOS to the PM on power situation?

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Tisha Malhotra answered.
2 months ago
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The Aluminium Association of India (AAI), the representative body of aluminium manufacturing companies, has sent a virtual SOS to the prime minister’s office (PMO) over the ongoing power shortage plaguing the aluminium sector. The association has requested the PMO to urgently intervene and assure the aluminium industry of at least 25-30 coal rakes per day for the captive power plants run by aluminium companies for power needs.

The whole problems arises because the aluminium sector in India is extremely power intensive. For instance, producing one tonne of aluminium needs nearly 14,500 units of continuous power supply. The association has asked the PMO to look into the matter on a priority basis. This shortage was despite coal stocks being higher by 20% yoy. Most captive power plants of aluminium companies are left with just about 3-4 days of coal inventories.
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