MCL Coal Production

MCL Cut down Coal Allocation for Second successive Month

Mahanadi Coalfields Ltd (MCL), one of the major coal producing subsidiary of CIL, has decided to allocate 80% coal of the total monthly scheduled quantity (MSQ) to its Non-power customers lifting coal through Road-mode in Feb’18.

All the Non-power consumers that have been assigned to procure coal via Fuel Supply Agreement (FSA), FSA through LOA route and Linkage auction FSA route have been asked to apply accordingly. The company has cited the logistic issues in Rail mode for the reduction in monthly coal allocation.

MCL’s Coal supply to the Non-power sector has been affected since Sep’17, when the power plant sector had faced scarcity of domestic coal. The company thus in order to augment coal supply to the power plants was reducing monthly allocation of Non-power sector.

The reduction of Non-power’s coal supply through Rail mode due to logistic issue had been enforced for the second time in the CY18, as MCL had previously levied the decision in Jan’18.

However, after considering the improved production and stock position at Hingula project in Talcher Coalfields and Samleshwari project in IB Coalfield, MCL had made provision for the procurement of the remaining 20% coal from the respective source through Road mode.

According to the monthly production data provided by MCL, Samleshwari project had achieved its coal production target of 1.328 MnT for Dec’17, with total output of 1.617 MnT coal during the month. Coal production had also increased 29% M-o-M compared with 1.256 MnT in Nov’17. Hindula project had also recorded an increase of 42% M-o-M to 0.793 MnT in Dec’17.

Samleshwari project and Hindula project had noted a closing stock of 1.1837 MnT and 0.7334 MnT respectively at the end of Dec’17. MCL has not released the production figures for Jan’18.


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