CIL plans to take steps to ease fuel supply bottlenecks

PTI Updated - September 07, 2014 at 01:32 PM.

State-owned Coal India Ltd (CIL) is planning to take steps to clear fuel supply bottlenecks, including augmenting the output to 615 million tonnes by the terminal year of XII Five Year Plan (2016-17), against the backdrop of power sector reeling under fuel shortages.

“To ease the coal supply bottlenecks, CIL is planning to initiate and develop infrastructure facilities like speeding up the process of laying railway tracks, especially in those areas where coal reserves can be tapped,” the company said in a latest report.

Development of sidings

Development of sidings is another thrust area that will help in increasing coal supplies, the ‘Maharatna’ status firm said, adding that the coal crushing capacity is also being augmented.

The PSU dispatched 353.83 mt of coal to the power sector in the FY’14, adding that it could have been higher but for the restrictions of intake of coal by some power stations due to availability of high coal stocks at the plant end.

Stock level

The stock level at power stations as on March 31 were sufficient for 14 days consumption and stood at an aggregate level of 20.19 mt.

“Our company also met around 86 per cent of supply under FSA (fuel supply agreement) commitments to power utilities, including 99 per cent of committed quantity to NTPC,” CIL said.

The company is hopeful that its efforts to ease the bottlenecks, that have impeded the growth in the past, would fructify in the years to come.

“Our new R&R policy has been made more flexible... which would help us in acquiring land expeditiously. This would see more coal projects opening up and help in enhancing the production levels,” it said.

The company added that it is planning to increase the production in abandoned underground mines with increased mechanisation.

Twenty eight power plants across the country had coal stocks of less than four days, as on September 4.

Published on September 7, 2014 07:59