Skip to content

Metals Producers Sound Latest Warning on Indian Power Crisis

  • Sponge iron makers in Chhattisgarh have cut capacity to 60%
  • Coalition of industry groups seeking intervention by PM Modi

Metals producers in India are cutting activity and warning of potential closures as a worsening coal shortage threatens to escalate into a full-blown energy crisis for Asia’s third-largest economy.

In the central state of Chhattisgarh, a hub for iron ore and steel-making, sponge iron makers are running at about 60% of usual levels and could be forced to shut down completely if they can’t get more coal, said Anil Nachrani, president of the Chhattisgarh Sponge Iron Manufacturers Association. His own company, Sunil Group of Industries, only has 10 days of reserves left, compared with two months normally, he said.