Coal India steps up loading to non-power consumers

Kolkata: Coal India Limited (CIL) has accelerated the loading of rakes to non-power sector consumers, since April 1, 2019, reducing its backlog by more than 44 per cent in over a three-and-half month period as of July 21, 2019.

The Maharatna coal mining monolith, much to the relief of non-power segment, liquidated nearly 2300 arrear rakes during the referred period which stood over 5100 rakes at the beginning of the current fiscal. The bulk of non-power consumers constitute Captive Power Plants (CPPs), cement sector followed by a host of other industries.

"With coal fired power stations comfortably stocked with over 25 Million Tonnes (MTs) of coal coupled with 32 MT stock at pitheads of Coal India's subsidiaries there is sufficient coal in the system" said an official of the company adding "this gives us the leeway to clear off all arrear rakes to non-power consumers in near future".

The genesis for building up backlog rakes for non-power consumers lay in the fact that during mid 2016-17 there was a low demand on CIL for coal from power sector and the subsidiary companies have shifted their booking for non-power group. However, from the second quarter of 2017-18 there was a sudden upsurge in demand for coal from the power plants. CIL in a bid to boost up the supplies to the stressed power utilities of the country rushed coal to their end on priority through rail mode. This has impacted movement of rakes to non-power sector and as a result the backlog kept building up for the bookings already made for non-power sector. To ensure the need of non-power Sector, CIL then offered coal to them through increased quantities by road mode.

However, with coal stocks at power plants stabilizing, the situation has improved now enabling the company to focus on stepping up supplies to non-power sector. CIL's coal companies with active support from Railways are able to increase the movement by rail mode to non-power

sector.