Western Coalfields Ltd (WCL) has earmarked 11 coal mines specifically to fulfill the requirement of thermal coal buyers from power plants linked to the company.
The company had identified these mines as the specific source to supply maximum amount of coal to the power plants. The company highlighted that its main focus was to provide quality and crushed coal through rail and road mode to the thermal plants so as to meet the shortfall and reduce their appetite for imports.
Apparently, power sector remains the chief consumer of coal produced from WCL.
As a matter of fact, WCL’s coal share in dispatch to the power sector has increased from 61% in FY14 to 82% in FY19. Out of 55 MnT coal dispatched in FY19, 45 MnT was supplied to the power plants. Besides, the company had also supplied 5 MnT coal under spot auctions and non-power linkage auction during the fiscal.
WCL’s coal production had drift lower post FY10, as various issues resulting in land acquisition led to reduced output from the company.
In last 5 years, WCL acquired 8,365 hectare of land & opened around 20 new project including 8 green projects and 12 brown projects. Meanwhile, 22 projects contributing 22 MnT coal production were closed due to exhaustion of coal reserve in the mines.
WCL could have lost around 17 MnT as a consequence, but the progressive addition of new coal projects helped the company to attain its highest ever output of 53.8 MnT in FY19. The company is aiming for production over 60 MnT in FY20.
Going forward, WCL is planning to open another 20 mines in the first phase in next 3-4 years followed by further 11 mines in second phase to reach up to a level of 100 MnT in next 7-8 years.
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