On the back of the improved production, our supplies also peaked to record levels
The recurrence of such a situation is highly unlikely this year as current coal supply is at a higher growth trajectory and stock position is relatively much more comfortable. Our production has hit a historic high of 253 million tonnes (MT) till August with 21% growth. The 44.6 MT rise in absolute terms in just 5 months and 4 days of the ongoing fiscal outdid the previous best of 44.5 MT of FY16, which was for the entire year. Also, better loading by CIL and logistics management by railways saw the rake loading to power sector going up by 14% during the period. These moves would avert any annual monsoon crisis at power plants.
– Pramod Agarwal (IAS)
Chairman, Coal India Limited
Last year, there were reports of coal shortage in the country post monsoon. What is the situation this year?
The recurrence of such a situation is highly unlikely this year as current coal supply is at a higher growth trajectory and stock position is relatively much more comfortable. Our production has hit a historic high of 253 million tonnes (MT) till August with 21% growth. The 44.6 MT rise in absolute terms in just 5 months and 4 days of the ongoing fiscal outdid the previous best of 44.5 MT of FY16, which was for the entire year. Also, better loading by CIL and logistics management by railways saw the rake loading to power sector going up by 14% during the period. These moves would avert any annual monsoon crisis at power plants.
What is the status of CIL’s coal supply right now?
On the back of the improved production, our supplies also peaked to record levels. Supply to the power sector has grown by nearly 40 MT till the first fortnight of September this fiscal. To a level of 264.7 MT from 224.8 MT of last year. Total offtake has increased to 308 MT, which is a year-on-year (YoY) jump of nearly 24 MT. Pitheads of Coal India are stocked with 29 MT. Coal inventory at power plants was close to 27 MT (including imported coal) with Coal India accounting for a major portion of it. Additionally, 7.6 MT was awaiting shipment at private washery sidings, goods sheds, ports and CIL’s own sidings. With sufficient coal available in the system, there is no cause for shortage apprehension.
Do you think that the volume has gone down?
Volume has increased and it depends on what is the priority of the nation. Till this time, the priority was to fulfil the need of the power sector and our production has increased significantly this year. So, in the third and fourth quarter, there will be a significant increase in volume.
What is the volume expected this year?
Already, we have done 30 million tonne in the two quarters. So in the third and fourth quarter, we expect to do another 50 MT. But I won’t be able to commit anything.
What is your view about the coal being imported?
We have not imported any coal. It has been ordered by somebody. CIL has not imported any coal without any buyer. It will go to the buyer as and when the rates are made and it is going.
What are the new technologies or eco-friendly techniques Coal India is adopting for mining?
Our focus is to be minimally invasive on environment and land, with availability of land being a persistent problem. The focus is on increased deployment of eco-friendly surface miners, which entail blast-free selective mining with minimal damage to the environment. We are planning to strengthen fleet by 50 more in addition to existing 21.
In-pit crushers, already in use, help reduce movement of dumpers, minimising diesel exhaust and lessening air pollution. OB cutting technology curtails noise and air pollution. Reviving environmentally clean underground production, we are adopting a slew of green mining technologies like high wall mining and powered support long wall. Mineable coal assets can be extracted at low cost with a low gestation period. Paste fill technology is another environment-friendly frontier.
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