MCL Coal Offtake

India: MCL Cuts Preferential Loading under FSA Coal Supply for Second Successive Month

Mahanadi Coalfields Ltd (MCL), the subsidiary of CIL operating in Odisha, has cut short preferential loading of Independent power producers drawing coal through Fuel Supply Agreement (FSA) for the second successive month in Oct’19.

The Independent power producers (IPP) having FSA with MCL were notified that they would be offered only 75% of their monthly scheduled coal quantity through the preferred mode of transportation. Customers willing to lift the balance 25% of the monthly coal volumes have been asked to opt for Road/RCR (Rail cum Road) mode.

The coal company had also made similar request back in Sep’19.

It was further informed that IPPs having any mine from Talchar coalfields in their FSA, would be offered the balance coal quantity from Hingula OCP) for lifting through Road/RCR mode. While, in case of IPPs linked to the mines of IB Valley fields, coal lifting envisaged for Road/RCR mode was offered from Lakhanpur OCP.

Of late, MCL has been facing dearth of coal following the landslide mishap at the Bharatpur mines. While the company had also informed incompetency in terms of coal supply from Samleshwari OCP due to some force majeure situations.

Incidentally, coal stock at Samleswari OCP had drastically reduced from 2.169 Lakh Tonne in Jun’19 to 0.1 Lakh Tonne at the end of Aug’19, following which MCL had terminated coal supply to the Linkage- auction FSA costumers (road mode) having Samaleswari OCP as primary source for Sep’19.

In terms of major development regarding coal mining, MCL had recently created two new mining areas under the name of ‘Mahalaxmi’ and ‘Subhadra’ in addition to the existing 10 mining areas.

While Mahalaxmi area was formed by carving out Basundhara-Garjanbahal area of IB valley coalfields, Subhadra area was developed by combining Utkal-A and Gopalprasad (W) coal blocks which were allocated by Coal ministry. The progress made in the allocated coal blocks would indeed help MCL increase its coal productivity.


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