Newsprint Makers Write To PM Modi, Seek Higher Coal Allocation For Non-Power Sector

The Indian Newsprint Manufacturers Association (INMA) has urged the Union government to increase coal supplies to the non-power sector, citing difficulties faced by manufacturers in securing adequate fuel under long-term supply arrangements.

In a letter to Prime Minister Narendra Modi, INMA said manufacturers were facing delays in receiving coal from public sector coal companies under long-term Fuel Supply Agreements (FSAs) through rail and road routes.

The association cited “significant operational challenges due to irregular coal dispatches and inadequate supplies” and called for the implementation of the Coal Allocation Policy recommended by the Cabinet Committee on Economic Affairs (CCEA). The policy provides for a 75:25 coal allocation ratio between the power and non-power sectors.

INMA said more than 95% of coal was reportedly being supplied to power plants under the existing dispatch pattern. It added that supply constraints had forced manufacturers to purchase coal from the open market at exorbitant prices and depend on grid electricity at substantially higher costs to keep their plants operational.

The association supplies newsprint to several publications, including The Times of India, Hindustan Times, The Hindu, Navbharat Times and Punjab Kesari.

Coal Allocation Plea

INMA reiterated its demand for a policy response, stating that public sector coal companies were not delivering supplies on time under long-term FSAs through rail and road routes.

The association has called for the implementation of the CCEA-recommended Coal Allocation Policy, which sets a 75:25 allocation ratio for the power and non-power sectors.

NTPC's Coal Procurement Plan

NTPC indicated earlier this month that it planned to procure 10 million tonnes (MT) of coal from captive and commercial mines to supplement its supplies.

The proposed procurement is the largest volume the public sector undertaking plans to source over a six-month period, ending with the 2026-27 financial year. NTPC has an annual coal requirement of 280 MT and sources most of its supplies from Coal India and its subsidiaries.

A government official said the company planned to increase procurement from captive and commercial mines to nearly 25% of its annual requirement, or 70 MT. NTPC is eventually expected to procure 10-15 MT of coal annually from commercial mines.

The company aims to source 25% of its coal requirement from captive mines and another 8-10% from commercial coal mines, in addition to its existing supply lines.

NTPC procured 2.9 MT of coal from commercial mines in 2024 but made no such purchases in 2025. Its target of procuring 10 MT in the second half of the current financial year would be more than three times the volume purchased in 2024.

Coal Stocks At Power Plants

As of October 5, NTPC's standalone fleet had coal stocks of 4.58 MT, equivalent to 36% of the prescribed level, against a normative requirement of 12.83 MT.

Based on the consumption rate assumed by the Central Electricity Authority (CEA), the available stocks were expected to last nearly six days. Ten NTPC plants had been classified as “critical” due to low coal availability.

Across thermal power plants, coal stocks stood at 18.15 MT as of October 5, sufficient for 6.5 days of consumption, against a normative requirement of 57.23 MT. Of the 176 thermal power plants using domestic coal, 81 were classified as “critical”, with stocks below 25% of their normative requirement.