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NEW DELHI: State-owned Coal India Ltd (CIL) plans to invest ₹19,650 crore by FY24 to boost its rail-based transportation capacity by an additional 330 million tonne (mt) by constructing rail links and setting up joint ventures.
The world’s largest coal miner's rail mobility play comes in the backdrop of recent shortages that had raised concerns. The situation since then has improved, with fuel stocks at 136 coal-based power projects, totalling 166.109 giga watt (GW), sufficient for nine days.
Fuel stocks at coal-based power projects had touched a low of 7.23 million tonnes (mt) on 8 October. India’s power plants burn 1.85-1.87 mt of coal every day to generate electricity.
While three railway lines in Central Coalfields Ltd and Mahanadi Coalfields Ltd are being constructed by CIL at an investment of ₹7,994 crore to transport 170 million tonnes annually, the PSU has also formed joint ventures (JVs) with Chattisgarh, Jharkhand and Odisha requiring an investment of ₹11,656 crore to transport 160 million tonnes of fuel every year.
“The Maharatna coal mining behemoth is constructing three important railway lines from its own funds, on deposit basis, in CCL and MCL at an estimated capital of ₹7,994 crore having 170 MTPA coal transportation capacity. Additionally, the company has forged four rail joint ventures with Chattisgarh, Jharkhand and Odisha at a capital outlay of Rs.11,656 Crores which would help move 160 MTPA of coal," CIL said in a statement on Tuesday.
“Around 69% of CIL’s overall coal output is expected from CCL, MCL and SECL by FY25 and it is in these fields that the company is aggressively laying foundation for evacuation infrastructure," the statement added.
CIL holds 64% stake in these JVs, with the balance held by rail public sector units and respective states.
“To increase coal evacuation capacity through rail mode by an additional 330 million tonnes per annum (MTPA) by FY 2024, when production is expected to scale up significantly, Coal India Limited (CIL) is investing an estimated capital of ₹19,650 Crores in strengthening its rail infrastructure," the statement added.
India has the world’s fourth largest coal reserves and is the second-largest producer of the fossil fuel. While CIL’s annual production target is 660 mt for the current financial year, offtake is estimated at 740 mt.
“Currently CIL’s rail transportation from its own sidings accounts for 56% of its total supplies. If loading from goods sheds, private washeries and MGR is also considered then the percentage of rail movement of coal goes higher to 79%," the statement said.
The depleted fuel stocks at power plants had led to concerns about a possible electricity shortage. This assumes significance given that coal fuelled power projects totalling 202.22 GW remain the mainstay of India’s power generation, accounting for more than half of the country's power generation capacity.
“The doubling of Tori-Shivpur (CCL) rail line was already commissioned in December 2019 and the tripling of the line which is under process shall enhance evacuation capacity to 100 MTPA from the existing 32 MTPA," the statement said and added, “Jharsuguda-Barpali-Sardega (MCL) single line was commissioned in April 2018 and the construction work for doubling of the line along with loading bulb at Barpali and a flyover complex at Jharsuguda are under progress. Dovetailing of FMC projects of Sardega 20 MTPA and Lajkura 15 MTPA to this rail connectivity would lift MCL’s transportation capacity additionally by 65 MTPA."
India’s daily electricity consumption has crossed 4 billion units, resulting in a 18% spike in coal consumption during August-September compared to the corresponding period in 2019.
This also comes at a time of electricity overdrawl and load shedding by Haryana, Punjab, Uttar Pradesh, Rajasthan, and Jammu and Kashmir due to electricity shortage as reported by Mint earlier.
While Haryana is reporting shortages in the range of 1.5 to 1.7 million units (MUs), Jammu and Kashmir is facing shortage of 3.45 MUs. Also, Punjab is facing shortages in the range of 1 to 5 MUs and Rajasthan’s shortages are in the range of 1 to 1.5 MUs. Uttar Pradesh is reporting shortages in the range of 0.5 to 1.16 MUs.
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