Newsprint makers seek PM Modi’s intervention over coal shortage, demand 75:25 allocation ratio
The Indian Newsprint Manufacturers’ Association (INMA) has asked Prime Minister Narendra Modi for direct intervention to resolve persistent coal supply shortages, warning that irregular shipments and inadequate allocations are limiting domestic production and threatening supplies to the print media industry.
In an urgent representation to the Prime Minister, the association, which represents manufacturers supplying newsprint to leading publications including Tech Word News, Hindustan Times, The Hindu, Navbharat Times and Punjab Kesari, sought timely dispatch of coal under existing Fuel Supply Agreements (FSA) with subsidiaries of Coal India Limited (CIL).
“Despite having long-term agreements in place with subsidiaries, including Northern Coalfields Limited (NCL), Central Coalfields Limited (CCL), South Eastern Coalfields Limited (SECL) and Western Coalfields Limited (WCL), producers are not receiving allocated coal rakes as per agreed schedules,” INMA said.
“The shortage has forced smelters to procure coal from the open market at exorbitant prices and rely on electricity from the grid at significantly higher costs to keep their plants running,” the association said.
Prolonged delays followed by the sudden accumulation of more coal rakes added financial and logistical pressures and created problems in terms of working capital, coal handling, storage capacity and transportation.
INMA has warned that supply constraints are preventing manufacturers from operating at optimal capacity, increasing the risk of production cuts, domestic market disruption and financial stress across the print media supply chain.
The association also urged the government to enforce the 75:25 ratio for coal allocation between the power and non-power sectors recommended by the Cabinet Committee on Economic Affairs (CCEA).
“More than 95% of coal supplies were reportedly directed to power plants, leaving consumers in the non-regulated sector (NRS), including newsprint producers, struggling to secure adequate supplies despite contractual commitments,” INMA said.
It called for a review of the existing coal dispatch pattern and introduction of a recommended allocation ratio to ensure more predictable supply of coal to non-power sectors.
The association demanded direct instructions to CIL and its subsidiaries to immediately resume timely, regular and evenly scheduled dispatches against existing FSAs, in line with contractual allocations.
“Newspaper is a critical raw material for national and regional newspapers, and a prolonged shortage could disrupt its availability in the domestic market and affect publications across the country,” the association said.
INMA urged the government to address the issues as a matter of priority, warning that a sustained coal shortage could undermine domestic production capacity and threaten the uninterrupted supply of newsprint to India’s print media industry.
Newsprint manufacturers have warned that irregular shipments and insufficient allocations are disrupting production and increasing operating costs.
INMA said its members, who supply newsprint to leading newspaper groups, were not receiving their allocated rake coal in accordance with contractual schedules, despite paying premiums for assured supplies.
“The shortage has forced producers to buy coal from the open market at inflated prices and rely on electricity from the grid at significantly higher costs to keep power plants running,” the association said.
The industry body sought urgent directions to Coal India and its subsidiaries, including Northern Coalfields Limited, Central Coalfields Limited, South Eastern Coalfields Limited and Western Coalfields Limited, to resume regular and evenly scheduled shipments of coal against the existing fuel supply agreements.
Irregular shipments to consumers in the non-regulated sector (NRS) also led to a backlog of coal rakes, with several shipments arriving within a short span of time after lengthy delays.
“This creates logistical and financial pressures on producers, including issues relating to working capital, coal handling, storage capacity and transport,” INMA said.
The association warned that the ongoing shortage is preventing manufacturers from operating at optimal capacity, potentially affecting the availability of domestic newsprint and disrupting the supply of newspapers and other publications.
The association sought the Prime Minister’s personal intervention and directions to the authorities concerned, warning that continued delays could cause further disruption to production and jeopardize the uninterrupted supply of newsprint to the Indian print media industry.
Published – 20 October 2026 22:35 IST