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Coal India may double supplies of coal for nearby consumers via road transport

Moneycontrol News Coal India is planning to double supplies to power generators within a radius of 60 km of its mines by increasing the transportation of coal via road to meet the shortages at plants, reported Economic Times[2]. [1] Coal India is planning to increase the number of trucks used to transport coal every day to 13,500 from 7,700 trucks to supply coal to the consumers, a senior Coal India executive told the paper.

Adding that the initiative — allowing power companies near coal pits to take coal directly from the mines despite exhausting one’s yearly quota — is a part of Coal India’s ease of doing business plan that has been received well.

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“The offer has caught on well with a large number of power companies that are already lifting coal through roadways on trucks.

We are now targeting sending almost double the quantity we have been sending through roadways,” the executive said. The company has listed 20 mines for which consumers, as well as power companies within a 60-km radius, can take as much coal as they want. The move will also increase the capacity of railways to carry coal to plants beyond 60 km, who are facing a shortage of coal following a sudden spurt in demand for thermal power.

Several factors like a reduction in power supplies had led to the sudden increase in demand for thermal power. “According to preliminary estimates, 35 rakes are expected to be freed up daily if Coal India manages to send coal on 13,500 trucks. These could then be utilised to feed coal to plants that are further away,” the executive said.

Earlier this month, Coal India had indicated that it would liquidate its 33 million tonnes of stocks lying in the pits to meet the increased demand for power. Anticipating that the increased demand will continue, the state-owned mining company also plans to boost its production, however, transportation of coal to power generating plants remains the biggest problem. “Increasing coal production and despatch would not be a problem, but the real issue is to mobilise the coal available at mine heads to thermal power plants,” the executive said.

Coal India is targeting to load 266 rakes a day compared to 250 rakes a day, which it managed to load last week.

It was the highest level in November.

In the medium term, Coal India intends to load 300 rakes a day through Indian Railways.

References

  1. ^ Coal India (www.moneycontrol.com)
  2. ^ Economic Times (economictimes.indiatimes.com)



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