Economy · GS3.1 · 2026-10-21 · 3 min read · 2026-10-21-pm
Newsprint Industry Seeks PM Modi's Intervention Over Coal Shortages
The Indian Newsprint Manufacturers' Association (INMA) has urged Prime Minister Modi to address coal supply disruptions that are affecting newsprint production. This issue highlights challenges in coal allocation between power and non-power sectors, relevant for understanding India's energy and industrial policies.
Coal supply disruptions and allocation imbalances are threatening newsprint production, prompting industry appeals for government intervention.
Why is this in the news?
On October 20, 2026, INMA sought Prime Minister Modi's direct intervention to resolve coal shortages disrupting newsprint production.
What is the coal supply issue faced by the newsprint industry?
- Coal supply disruptions. Despite valid long-term fuel supply agreements with Coal India Limited subsidiaries, newsprint manufacturers are not receiving coal rakes as per agreed schedules.
- Consequences for production. Irregular and inadequate coal dispatches have forced mills to buy coal at high open market prices and rely on expensive grid electricity, raising operational costs and risking production cuts.
Why does coal allocation ratio matter for the newsprint industry?
- Current allocation imbalance. More than 95% of coal supplies are reportedly directed to power plants, leaving non-regulated sectors like newsprint manufacturers struggling to secure adequate coal despite contractual commitments.
- Demand for 75:25 ratio. INMA has urged enforcement of the Cabinet Committee on Economic Affairs (CCEA)-recommended coal allocation ratio of 75% to power and 25% to non-power sectors to ensure predictable coal supply for industries.
What are the broader implications of coal shortages for the newsprint sector?
- Supply chain risks. Persistent coal shortages threaten domestic manufacturing capacity and could disrupt the availability of newsprint, impacting newspapers and print media across India.
- Financial and logistical challenges. Delayed and bunched coal deliveries create working capital pressures, storage and transportation challenges, further straining manufacturers.
What solutions has the newsprint industry proposed?
- Direct government intervention. INMA has requested Prime Minister Modi's personal intervention and direct instructions to Coal India and its subsidiaries to resume timely, regular, and evenly scheduled coal dispatches as per existing fuel supply agreements.
- Review of coal dispatch patterns. The industry seeks a review and implementation of the recommended coal allocation ratio to balance supplies between power and non-power sectors.
Key numbers
| Figure | What it measures | Source |
|---|---|---|
| 95% | Percentage of coal supplies reportedly directed to power plants, limiting availability for non-power sectors | |
| 75:25 | Recommended coal allocation ratio between power and non-power sectors by the Cabinet Committee on Economic Affairs |
Back to basics: Coal Allocation and Fuel Supply Agreements
Coal allocation refers to the distribution of coal resources between different sectors such as power generation and industrial use. Fuel Supply Agreements (FSAs) are contracts between coal producers and consumers that specify quantities and schedules for coal delivery. Proper allocation and timely dispatches are essential to ensure uninterrupted industrial production and energy security.
Practice: MCQ, Mains and revision
Prelims MCQ
Consider the following statements about coal supply to the newsprint industry: 1. The Indian Newsprint Manufacturers' Association has demanded enforcement of a 75:25 coal allocation ratio between power and non-power sectors. 2. More than 95% of coal supplies are currently directed to non-power sectors, causing shortages in power plants. Which of the statements given above is/are correct?
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
Answer and trap
Answer: (a). Statement 2 is incorrect because more than 95% of coal supplies are directed to power plants, not non-power sectors.
Mains question (15 marks)
Examine the challenges posed by coal allocation policies on non-power industries like the newsprint sector in India.
Examine: Analyze how coal allocation affects non-power industries and suggest measures to address these challenges.
Intro: Coal allocation policies significantly impact the operational efficiency of non-power industries such as newsprint manufacturing.
- Explain the current coal allocation imbalance favoring power plants over non-power sectors.
- Discuss the operational and financial challenges faced by the newsprint industry due to coal shortages.
- Evaluate the demand for enforcing the 75:25 coal allocation ratio and its potential benefits.
- Suggest policy interventions for ensuring reliable coal supply to non-power industries.
Conclusion: Balanced coal allocation is essential to sustain non-power industries and maintain industrial growth alongside energy security.
Quick revision
- Why is the newsprint industry facing coal shortages?
- Because coal dispatches under existing agreements are irregular and insufficient, forcing reliance on costly open market coal and electricity.
- What coal allocation ratio does the newsprint industry demand?
- They demand a 75:25 allocation ratio between power and non-power sectors as recommended by the Cabinet Committee on Economic Affairs.
- What risks do coal shortages pose to the newsprint industry?
- They risk production cuts, supply disruptions to newspapers, and financial and logistical challenges for manufacturers.
Sources
- [1] The Hindu: Newsprint makers seek PM Modi's intervention over coal shortages, demand 75:25 allocation ratio · 2026-10-20 · newspaper