Coking coal shortage and pending power bills cripple steel plant

VISAKHAPATNAM: A severe shortage of coking coal has been crippling the Visakhapatnam Steel Plant on one hand, and on the other hand, there are increased pending power bills. The Eastern Power Distribution Corporation Limited (EPDCL) has warned the plant management by issuing a notice that it would stop the power supply if the management did not pay more than Rs. 70 crore pending bills.

Regarding the coking coal shortage, the management says that amidst severe disruptions stemming from the agitation by workers at Adani Gangavaram Port Limited (AGPL), which has totally disrupted coal supply, posing a formidable challenge to the plant's production. However, undeterred by the obstacles, the steel plant’s management has launched a comprehensive strategy to mitigate the impact of the disruptions and uphold operational continuity, according to a press note issued by the plant management.

The CITU alleged that the plant CMD created a coking coal shortage. It has been claimed that this is the first time in the 33 years of the plant's production that management has created a shortage. The CITU state secretary, Ch. Narasinga Rao said that around 30,000 tonnes of coking coal are in the Gangavaram stockyard and another 1.5 lakh tonnes of coking coal had arrived from Australia in two ships at the Gangavaram Port. He alleged that there is only a wall between Gangavaram Port and the Steel Plant, and the plant CMD did not take care of the plant interests. He demanded the government remove the plant CMD for his negligence that caused a drop in the production of the plant by around 80%.

Meanwhile, the plant management said that it had taken action to ensure uninterrupted coal supply to ensure safe operations. The plant management informed that Adani Gangavaram Port Limited (AGPL) had halted operations. The plant is heavily dependent on AGPL for handling raw materials, including coking coal and limestone, which are vital for its production. In view of the extreme criticality of the situation, RINL has sought the help of the district administration to restore operations at AGPL without delay in shifting approximately 2.2 lakh tons of coal which is already at AGPL. The alternative measures suggested include diverting two ships to Vizag Port Authority to ensure raw material security with the able support of Visakhapatnam Port Authority (VPA) and a commodity loan of 50,000 tons of coal from alternate ports, besides a global tender for emergency procurement of 1,50,000 tons of coal, plant CMD Atul Bhat informed.

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