Newsprint makers seek PM Modi's intervention over coal shortages, demand 75:25 allocation ratio

Published 2026-10-21 · Updated 2026-10-21 · 3 min · 500 words

UPSC CSE Context

Why in News

Indian Newsprint Manufacturers' Association (INMA) has sought PM Modi's intervention over coal supply disruptions affecting newsprint production.

Syllabus Connection

Economy: Infrastructure (coal), Industrial policy, Government policies and interventions.

Exam Relevance

Highlights sectoral coal allocation challenges, fuel supply agreements, and impact on downstream industries—relevant for GS Paper 3 and Prelims.

Core Issue

Coal shortages disrupt newsprint production.

Key Development

INMA urges PM to enforce 75:25 coal allocation ratio for non-power sector.

Stakeholders

• Coal India Limited (CIL) and subsidiaries
• Print media industry
• Government of India

Static Knowledge

High-Value Background

• Coal India Limited (CIL) is a Maharatna PSU under the Ministry of Coal, supplying about 80% of India's coal.
• Fuel Supply Agreements (FSAs) are long-term contracts between coal companies and consumers, specifying quantity, quality, and delivery schedules.

Exam Linkage

• Useful for questions on coal sector reforms, PSU functioning, and industrial input supply chains.

Concepts in Context

• Non-Regulated Sector (NRS) includes industries other than power, such as steel, cement, and newsprint, which rely on coal as fuel or feedstock.

Institutions and Mechanisms

• Cabinet Committee on Economic Affairs (CCEA) recommends coal allocation ratios between power and non-power sectors.

Dynamic Analysis

Economy

• Coal supply disruptions raise production costs for newsprint manufacturers, potentially increasing newspaper prices.
• Dependence on open market coal and grid electricity erodes profit margins and competitiveness of domestic newsprint industry.
• Bunching of coal rakes creates working capital blockages and logistical inefficiencies, affecting overall industrial productivity.

Governance

• Non-adherence to CCEA-recommended 75:25 allocation ratio indicates weak enforcement of policy directives.
• Lack of timely and equitable coal distribution to NRS consumers reflects coordination gaps between CIL subsidiaries and ministries.
• Direct appeal to PM highlights institutional failure in grievance redressal mechanisms for industrial coal consumers.

Society

• Newsprint shortage can disrupt newspaper supply, affecting information dissemination and democratic discourse.
• Higher newsprint costs may force small and regional newspapers to reduce circulation or shut down, impacting media plurality.
• Print media remains a significant employment generator; production cuts could lead to job losses in the sector.

Mains Value Addition

Arguments

• Ensuring fuel supply to non-power sectors is essential for balanced industrial growth and downstream employment.
• Contractual sanctity of FSAs must be upheld to maintain investor confidence and industrial planning.
• Coal allocation policy should balance energy security with the needs of other core industries.

Examples

• Newsprint manufacturers supplying to major dailies like The Times of India and Hindustan Times are affected by coal shortages.

Data Points

• More than 95% of coal supplies reportedly directed to power plants, leaving NRS consumers with inadequate supplies.

Counterpoints

• Prioritising power sector coal may be justified to ensure electricity supply for households and essential services.
• Newsprint industry may need to diversify energy sources or improve efficiency rather than rely solely on coal allocations.

Way Forward

• Enforce CCEA-recommended 75:25 coal allocation ratio through strict monitoring by the Ministry of Coal.
• Streamline coal dispatch scheduling to avoid bunching and ensure even distribution to NRS consumers.
• Encourage newsprint manufacturers to adopt energy-efficient technologies and alternative fuels to reduce coal dependence.

Primary/reference source: thehindu.com