Coal news and updates

Fast-track rail projects to move 300 MT coal

The country had to import a record 135 MT coal to meet domestic requirement last year. The demand-supply gap of coal may widen to 185.5 MT in 2016-17

Three critical rail links being fast-tracked at the highest level will ensure transportation of 300 million tonnes (MT) of additional fuel to consumers amid shortages being faced in the country, Coal Ministry has said.

Coal India Ltd (CIL) has maintained it has potential for incremental supplies which cannot be transported in the absence of rail connectivity to transport the dry-fuel.     

The three rail corridors being fast-tracked are: Tori-Shivpuri-Kathotia in North Karanpura, Jharkhand; Bhupdeopur-Korichhaapar to Mand Raigadh mines in Chhattisgarh and Barpali-Jharsuguda in IB Valley, Odisha.

On completion, they “can help transport 300 MT of coal annually, enabling Coal India to meet the demand of the nation”, the Coal Ministry said in a note.     

It said that production build up is a big challenge and the movement of coal from producing centres to the consuming centres is also difficult as a number of potential coalfields lack rail infrastructure facilities for coal evacuation.      

“To match the movement of coal with the projected production levels, a number of critical rail links have been identified” and a “high-level Inter Ministerial Committee constituted by PMO is addressing the issue of faster implementation of critical railway projects in potential coalfields,” it added.      

The Cabinet Committee on Infrastructure (CCI) in July agreed to monitor the progress of the three rail links critical for transporting coal from CIL mines located in Odisha, Jharkhand and Chhattisgarh.      

The difficulties faced in execution of these three projects, entailing Rs 7,500 crore expenditure relate to forestry and environment clearances besides land acquisition, rehabilitation and resettlement as well as law and order problems. The government had said two rail projects, including Tori-Shivpur, are likely to be completed by the end of 2017 and will facilitate coal evacuation besides pushing up production of the fuel.     

Coal India CMD S Narsing Rao has said these three coalfields require only about 300-odd kms rail connectivity to provide at least 300 MT of additional coal production per annum to fulfil the thermal power requirements of the country.     

Rao has said that these railway lines are essential to meet 12th Plan power capacity addition as CIL was unable to move out coal in absence of transportation facilities.      

The demand-supply gap of coal is likely to widen to 185.5 MT in 2016-17. The country had to import a record 135 MT coal last year to meet domestic requirement.

Source: PTI