Newsprint Makers Seek PM Modi's Intervention Over Coal Shortages

Domestic newsprint manufacturers have asked Prime Minister Narendra Modi to step in and solve ongoing coal shortages that are hurting their production. The Indian Newsprint Manufacturers' Association sent an urgent note to the Prime Minister. The group represents mills that supply paper to major newspapers like The Times of India, Hindustan Times, The Hindu, Navbharat Times, and Punjab Kesari.

Supply Issues

Mills have valid long-term fuel supply agreements with subsidiaries of Coal India Limited. These subsidiaries include Northern Coalfields Limited, Central Coalfields Limited, South Eastern Coalfields Limited, and Western Coalfields Limited. Despite these agreements, factories are not getting their coal rakes on time. These delays are followed by the sudden arrival of multiple rakes at once. This creates big problems for moving, handling, and storing coal, and puts heavy pressure on working capital.

Higher Costs

Because of the irregular supplies, mills must buy coal from the open market at very high prices. They also have to use costly grid electricity just to keep their plants running. The association wants the government to make sure power and non-power sectors get the recommended 75 to 25 coal allocation ratio. Right now, most supplies go to power plants, leaving non-regulated sector consumers struggling. The association warned that these shortages could lead to production cuts and disrupt the print media supply chain across the country.

Context

Coal is a vital fuel for many industrial manufacturing plants that need continuous heat and energy to run heavy machinery. When regular fuel supplies get blocked, factories must find expensive backup power sources to avoid shutting down completely. This kind of supply pressure affects various industrial sectors in India that rely on steady raw material transport.