Domestic Coal Rakes Transported by Indian Railways Rises 17% M-o-M in Nov’19

Rakes supplied by Indian railways for domestic coal movement have extended the rise on the monthly basis to attain a 5-month high total during Nov’19.

Data compiled by CoalMint research shows that domestic coal rakes delivered in Nov’19 were marked 17% higher on the month at 11,616 compared with 9,938 noted in Oct’19. Apparently, rake movement had continued the growth for the second-successive month during Nov’19.

Recovering from the torrential rainfall across its subsidiaries, CIL had managed to step up supplies by improving its coal production in the recent months, which was part reflected in the increased coal movement via railways.

Incidentally, CIL had attained the 50 MnT coal production mark for the first time in the current fiscal during Nov’19, which is expected to elevate further during the remainder of FY20.

Of late, the power sector has witnessed a weaker seasonal demand of coal amid monsoons. Besides, the urgency for coal supplies was also lowered by a better coal stock position in hand compared with the previous year.

However, in order to rebuild stock level for the forthcoming summer season, rake supplied to power sector were increased 17% on the month to 9,022 in Nov’19. As a matter of fact, average loading envisaged for power stations stood 300.73 rakes/day in Nov’19, rising 21% M-o-M from 248.23 rakes/day in Oct’19.

Besides, rake delivered to non-power sector were also augmented with the gradual improvement in domestic coal availability. The non-power sector had procure 2,594 coal rakes in total during Nov’19, at an average of 86.47 rakes/day, which was assessed 20% higher on the month from 72.35 rakes/day noted in Oct’19.

Over the course of the first 11 months of CY19 (Jan-Nov’19), the railways on an average has loaded 376.41 rakes/day, accounting to 125,721 rakes in total, during the period.

Major Coal Receivers:

India’s largest power producer-NTPC, had taken the highest number of coal rakes for its plants’ operation in Nov’19. The count of rakes had increased 24% M-o-M to 1,872 during the month.

Maharashtra State Power Generation Company was the second-largest rake procurer, with intake of 748 rakes in Nov’19.

Among the non-power sector, SAIL had acquired the highest number of coal rakes, accounting to 396 in Nov’19.

Major Suppliers:

East Central railways (ECR) comprising of Dhanbad division emerged as the highest rake supplier during Nov’19, followed by South East Central Railways (SECR). However, the later had noted a comparatively higher growth in rake supplies than the former during the month.

Source: CoalMint Research
Quantity in terms of rakes supplied

Rakes deliveries via SECR was boosted by the commissioning of a 44 km long new railway line in Chhattisgarh under East Rail Corridor from Kharsia to Korichapar which turned operational on 12 Oct’19 enabling coal evacuation from Mand-Raigarh and Korba coalfields of SECL.

East Rail Corridor is developed by Chattisgarh East Railway Limited (CERL), a special purpose vehicle between SECL, Government of Chattisgarh and IRCON International for laying down a 136 km rail line from Kharsia – Korichapar – Dharamjaygarh – Korba.

The next leg of the 30 km line between Korichapar and Dharamjaygarh is likely to come up by middle of CY20. Later, with Dharamjaygarh finally getting connected to Korba comprising of a stretch of 62 km, CERL would mark the conclusion of the 136 km rail line.