Coal Supply Woes Push Newsprint Industry To Seek PM's Intervention

India's newsprint manufacturers have sought greater access to domestic coal, saying inadequate supplies under long-term agreements are raising operating costs. The Indian Newsprint Manufacturers Association (INMA) has written to Prime Minister Narendra Modi, flagging irregular coal dispatches from public-sector coal companies.

The association supplies newsprint to publications including The Times of India, Hindustan Times, The Hindu, Navbharat Times and Punjab Kesari. It has urged the government to implement a coal allocation policy recommended by the Cabinet Committee on Economic Affairs (CCEA).

The demand comes amid low coal inventories at thermal power plants. NTPC, India's largest power generator, is planning to increase purchases from captive and commercial mines to supplement its existing supplies.

Newsprint Makers Seek 75:25 Allocation

INMA has called for a 75:25 coal allocation ratio between the power and non-power sectors under the proposed policy. According to the association, more than 95% of coal is reportedly being supplied to power plants under the current dispatch pattern.

In its letter, INMA cited operational difficulties caused by irregular dispatches and inadequate supplies under Fuel Supply Agreements (FSAs), which cover long-term coal supplies. The association said these problems affect coal availability through both rail and road routes.

The supply constraints have forced manufacturers to buy coal from the open market at high prices. INMA also said some producers have had to rely on grid electricity at substantially higher costs to keep their plants running.

NTPC Steps Up Coal Purchases

NTPC plans to procure 10 million tonnes (MT) of coal from captive and commercial mines over six months, until the end of FY2026-27. A government official said the company aims to raise purchases from these sources to nearly 70 MT annually.

NTPC requires around 280 MT of coal a year and sources most of it from Coal India and its subsidiaries. It bought 2.9 MT from commercial mines in 2024 but made no such purchases in 2025. Its planned 10 MT procurement in the second half of the current fiscal would be more than three times its 2024 volume.

Coal stocks remain under pressure across the sector. As of October 5, NTPC's standalone fleet held 4.58 MT, or 36% of its prescribed requirement, enough for nearly six days of consumption. Across 176 domestic-coal-based thermal power plants, 81 were classified as critical, with stocks below 25% of their normative requirement.