Coal news and updates

Short supply of coal pushes up freight cost at MP power plant

Mismanagement and irregularities in railway freight (coal) movement has badly hit thermal power stations in Madhya Pradesh. Latest being Sanjay Gandhi Thermal Power Station, Birsinghpur, located in Umaria district of MP which had to cough up 30% higher transportation charges for short supply of coal.

Freight cost shot up as about 1000 metric tonne of less coal was delivered against figures shown to be loaded and dispatched.

Documents with TOI reveal, a rake from Bhatgaon in Chhattisgarh delivered 2,944 metric tonne coal at SGTPS on May 29 as against 3,885 metric tonne shown to have been loaded. Fifty seven wagons had left Bhatgaon on May 27.

For this SGTPS has been charged a sum of Rs 17,73,270 as freight charges. This works out to be Rs 602 for transport of per MT of coal, about 30% higher than the normal price of Rs 456.

Sources said power generation company pay a huge sum to agencies for ensuring proper loading and timely unloading of coal in railway rakes, but despite this, short supply of coal adds to its cost.

Chief engineer of Sanjay Gandhi Thermal Power Station, AK Taylor, told TOI, "We take action against agencies involved in cases like this."

When asked about current short supply of coal resulting in a loss to the company, Taylor said, "I will get back after getting details."

source: http://timesofindia.indiatimes.com