Coal news and updates

The Nagpur bench of Bombay high court on Thursday pulled up Mahagenco to explain why it had not been lifting coal and claiming shortage on the other hand. The company has been charged with creating an artificial shortage to justify import of costly coal. Earlier, Comptroller and Auditor General (CAG) too had castigated the company for not lifting its share of coal.

 

Now another fact has come to light. According to WCL, about 50 lakh ton coal was lying in its mines but Mahagenco was not ready to lift it, saying that it was not its job. Of course the entire amount won't be available to the company but it would certainly get a significant portion. Mahagenco's annual receipt from WCL is over 225 lakh ton.

 

A WCL officer claimed that Mahagenco could get another 10,000 ton per day through road. "We have three open cast mines at Gondegaon, Inder and Kamptee. Genco can transport coal by road to its Koradi and Khaparkheda power plants. We have a cost plus mine in Badadi - near Chandrapur power plant. Until May Mahagenco was lifting 4,000 ton but this is now down to between 2,000 and 2,500 ton per day. Some 14 lakh ton is lying in the mine due to less offtake," a coal ministry source said.

 

 

When Mahagenco officials were asked about this last week they had maintained that it was not the company's job to lift coal. "Chief secretary had supported our stand in a meeting of state government officials and WCL. If railway transport is not our job why road transport should be any different? Moreover, this seems to be a problem with WCL. MCL doesn't have such issues," an official had said. However, this stand has been rejected by the HC. The official also chose not to comment why other state-run gencos were lifting coal more than its share using the road route.

 

Commenting on the specific demand, the Mahagenco officer said, "If WCL can transport 75,000 ton per day why does it need our help to transport another 10,000 ton? It will get better rates from transporters due to volume."

 

On this, WCL source say, the company has its limitations. However, if WCL transports the coal it charges Rs116 per ton as extra fee. On the other, Mahagenco can easily arrange transport at less than Rs100 per ton. The Rs16 per ton benefit will be passed on to consumers."

 

How much coal did Mahagenco lift (in lakh ton)

 

year contracted actually lifted % offtake

 

9-10225 22098%

 

10-1122519887%

 

11-1222517075%

 

12-1322517577%

 

13-1418513774%

 

Source: ToI