India’s newsprint manufacturers are calling on Prime Minister Narendra Modi to address coal supply shortages. The Indian Newsprint Manufacturers Association (INMA) has requested a 75:25 coal allocation ratio between the power and non-power sectors.
INMA, supplying newsprint to major publications like The Times of India and The Hindu, argues that irregular coal dispatches from public-sector companies are driving up operating costs. They claim that over 95% of coal is currently allocated to power plants, leaving non-power sectors struggling.
Supply issues have forced newsprint makers to purchase coal from the open market at higher prices or rely on expensive grid electricity. INMA’s letter to the Prime Minister highlights operational challenges caused by inconsistent coal deliveries under Fuel Supply Agreements (FSAs).
These agreements, meant to ensure long-term coal supplies, have reportedly fallen short, impacting both rail and road coal transportation. As a result, some manufacturers face increased costs to keep operations running.
Coal supply concerns arise as India’s power sector grapples with low coal inventories. NTPC, the country’s largest power generator, is taking steps to secure additional coal supplies.
NTPC plans to procure 10 million tonnes of coal from captive and commercial mines over the next six months, up from 2.9 million tonnes purchased in 2024. They aim to boost annual purchases from these sources to nearly 70 million tonnes.
As of early October, NTPC’s coal stocks stood at 36% of its prescribed requirement, sufficient for approximately six days of consumption. Across India, 81 thermal power plants were classified as critical, with coal stocks below 25% of their normative needs.
The newsprint industry’s plea reflects broader challenges in India’s coal supply chain. With both power and non-power sectors competing for limited resources, the government‘s response to INMA’s request could significantly impact various industries.
For newsprint manufacturers, the outcome may affect their ability to maintain operations and manage costs. The proposed 75:25 allocation ratio, if implemented, could provide relief by ensuring a more stable coal supply.
As the government considers its options, the focus is on balancing power generation needs with those of critical sectors like newsprint production, ensuring a reliable supply of essential resources.
