India’s captive power producers facing severe shortage of coal

18 December 2017

Indian Captive Power Producers Association (ICPPA) recently indicated that its members which include players from key sectors like steel and aluminium are facing severe shortage of the fuel which may lead to closure of plants. It has further urged the government to ensure coal availability, saying most captive power producers (CPPs) are even struggling to maintain critical stock level.

ICPPA further said that the coal supplied by Coal India Ltd to CPPs must be at the same rate at which it is being given to the Independent Power Producers (IPPs). Coal India’s coal is priced approximately 20% higher for CPPs as compared to the IPPs.

Seeking government’s intervention, the association indicated that the CPPs are suffering huge financial losses and forced to procure coal from alternate sources in spot market at higher prices