Mahanadi Coalfields Ltd (MCL), a subsidiary of CIL, operating in Odisha has sorted out a way to increase rake availability for power sector without reducing the coal supplies of non-power sector.
The coal company has informed that it would allocate 75% of the monthly quota of coal supplies via Rail mode and the remaining 25% via Road mode to all the non-power consumers who take coal through the Rail mode for the month of Aug’18.
Directive received from Coal Ministry and CIL, already compels power producers located near close proximity of mines to lift the desired coal quantity via road. The actions not only reduces power plants’ prompt coal demand but also ease the availability of rakes to long distance Power stations which depends on Rail mode of transportation for coal supply and persistently face critical stock situation.
The initiative taken by MCL is also in similar lines to reduce the burden on Rail transportation and using the spared rakes for distant power plants’ coal supply.
Furthermore, considering the improved production and availability of coal stock at Hingula OCP in Talcher coalfields and Kulda OCP in IB coalfields, the non-power consumers taking coal through Rail mode shall be offered 25% of the scheduled quota (MSQ) from these sources. MCL has also made it clear that any consumers would be permitted to lift 25% MSQ from these sources, if they opt for road mode of transportation.
While for consumers lifting coal through MGR, MCL has asked them to procure maximum quantity through MGR mode and remaining quantity in the ratio of 75:25 from Rail and Road mode respectively.
The measure to increase rake availability for power sector can be seen as a necessary precaution taken in a view that power sector’s coal demand is likely to increase from Aug’18.
The same situation had hit the power sector last year, as the coal company was not able to raise the coal supply to power sector which had resulted in depletion of coal stocks. While in order to increase supplies to power sector, MCL had implied a 20% cut for non-power’s coal supply from Sep’17.
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