<p><b data-stringify-type="bold">By Swansy Afonso</b></p>.<p>A coal shortage in India has led to soaring costs for steel producers as they compete with other industrial consumers for supply.</p>.<p>Mills are paying more than four times the normal costs for procuring coal from e-auctions and from mines, according to V R Sharma, managing director at Jindal Steel & Power Ltd. Still, there has been no impact on production at most primary steel producers yet as they have adequate supplies and are unlikely to curtail output, he said. </p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/national/coal-crisis-india-left-with-few-options-to-avoid-power-crunch-1037829.html" target="_blank">Coal crisis: India left with few options to avoid power crunch</a></strong></p>.<p>India, which relies on coal for about 70 per cent of electricity generation, is grappling with a shortage after a jump in demand, a squeeze on domestic mine output, and surging prices of seaborne supply. The country has been prioritising the power sector, spurring concerns that other industries may face a shortfall.</p>.<p>“Integrated secondary steel mills or stand-alone sponge iron producers may have to face production cuts as they rely on non-coking coal to run operations,” said Jayanta Roy, senior vice president at ICRA Ltd. </p>.<p>“Aluminum producers too are going to face a problem of availability and price of coal for their captive power plants and, depending on their supply tie-ups or contracts for international purchases, may have to face shortages as the government’s priority remains to the power sector,” he said.</p>.<p>However, with the end of the monsoon season and efforts of Coal India Ltd to boost production, supplies should improve going forward, Jindal Steel’s Sharma said.</p>.<p><strong>Check out the latest videos from <i data-stringify-type="italic">DH</i>:</strong></p>
<p><b data-stringify-type="bold">By Swansy Afonso</b></p>.<p>A coal shortage in India has led to soaring costs for steel producers as they compete with other industrial consumers for supply.</p>.<p>Mills are paying more than four times the normal costs for procuring coal from e-auctions and from mines, according to V R Sharma, managing director at Jindal Steel & Power Ltd. Still, there has been no impact on production at most primary steel producers yet as they have adequate supplies and are unlikely to curtail output, he said. </p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/national/coal-crisis-india-left-with-few-options-to-avoid-power-crunch-1037829.html" target="_blank">Coal crisis: India left with few options to avoid power crunch</a></strong></p>.<p>India, which relies on coal for about 70 per cent of electricity generation, is grappling with a shortage after a jump in demand, a squeeze on domestic mine output, and surging prices of seaborne supply. The country has been prioritising the power sector, spurring concerns that other industries may face a shortfall.</p>.<p>“Integrated secondary steel mills or stand-alone sponge iron producers may have to face production cuts as they rely on non-coking coal to run operations,” said Jayanta Roy, senior vice president at ICRA Ltd. </p>.<p>“Aluminum producers too are going to face a problem of availability and price of coal for their captive power plants and, depending on their supply tie-ups or contracts for international purchases, may have to face shortages as the government’s priority remains to the power sector,” he said.</p>.<p>However, with the end of the monsoon season and efforts of Coal India Ltd to boost production, supplies should improve going forward, Jindal Steel’s Sharma said.</p>.<p><strong>Check out the latest videos from <i data-stringify-type="italic">DH</i>:</strong></p>