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India's NALCO Faces Threat of Output Cut-Officials
industry news

BHUBANESWAR, India Feb 22 -- Indian state-run aluminium producer NALCO (NALU.BO: Quote) may have to cut output in ten days if coal supply disruption continues in eastern Orissa state, company officials said on Tuesday.

The supply of coal via railways has been stopped for the past five days in the country's leading aluminium-producing state as the consequence of an economic blockade by people in the district on some local issues.

"We have not brought down any metal production, but if coal stock goes to zero, we may be forced to reduce production" NALCO's executive director for production, S. Sridhara, told Reuters.

Officials said the company had adequate coal stocks to run operations so far but would have to scale down production if the supply disruption continued for longer.

They said NALCO's aluminium plant at Angul has a coal stock of around 200,000 tonnes, which can meet requirements for ten days.

The coal supply disruption in the central district has also hit state-run power utility NTPC's (NTPC.BO: Quote) units in the eastern state.

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