Wednesday, September 28, 2022

NALCO shares slip by 4.7% as coal shortage hits operations

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New Delhi: Shares of National Aluminium Company (NALCO) slipped by 4.7 percent intraday on Thursday after the company said on October 16 that it was facing acute coal shortage which affected its smelter plant operations.
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The stock had corrected about 30 percent in the last six months.

NALCO dependent on MCL for coal

NALCO is fully dependent upon Mahanadi Coalfields Limited (MCL) for the supply of coal to its captive power plant at Angul and steam and power plant at Damanjodi. The state-run company requires about 17,000 tonnes of coal per day for its Angul plant. At the time, NALCO’s CPP receives about 8,000-9,000 tonnes per day and there is a shortfall of around 7,000-8,000 tonnes per day.

‘NALCO has exhausted buffer coal stock’

“Due to this short supply, which is running since the last seven weeks, the buffer stock of coal available with NALCO’s captive power plant has been exhausted. Since the supply of coal has not improved, the company has been drawing around 190 MW of power from the state grid,” the company said in a statement. It added that 80 electrolytic pots in the smelter plant have been stopped as of now.

3 units under shutdown

Presently, three units of NALCO’s Captive Power Plant (CPP), each of 120 MW capacity, are under shutdown and further one more unit will be shut due to coal shortage, the statement said. Due to this short supply, which is running since the last seven weeks, the buffer stock of coal available with the company’s CPP has been exhausted.

Since the supply of coal has not improved, the PSU has been drawing around 190 MW of power from the state grid. As on date, 80 electrolytic pots in the smelter plant have been stopped. Unions and associations have appealed to MCL, Coal India and Ministry of Coal to ensure increased coal supply to Nalco to tide over the situation, it added.

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