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The Railway Ministry has urged the Coal Ministry to take a fresh look at the issue of granting licences for mining and production of coal in certain blocks in Pakur area in Jharkhand, in view of an interesting development.
The mines allocated to the Punjab State Electricity Board (PSEB) in the Pakur coal block are reportedly producing more than the licensed volume, much to the satisfaction of the Railways, which now transports sizeable quantities over a long lead, about 1,500 km, and, therefore, earns handsome revenues. The coal from the Pakur block goes to meet the requirements of three PSEB power houses located at Ropar, Bhatinda and Lehra Mohabatpur.
Last year, the Railways transported about nine million tonnes of Pakur coal, more than the licensed volume for the three power houses, which means the daily loading was on an average 7.5 rakes. The Railways earned as freight, an estimated Rs 65 lakh a rake and, therefore, wants not only the present increased production to continue, but has also urged the Coal Ministry to allow even higher licensed capacity for mining of production of coal in the Pakur area.
Jharkhand objects
But the problem is that the Jharkhand Government is believed to have raised objections to the report of production in excess of the licensed volume. Also, granting licences for new bocks, it is pointed out, will not be easy in view of environment and other related issues. Interestingly, PSEB does not undertake the mining operation on its own at Pakur, but the job has been left to a private MDO (mining developer and operator).
There is another problem. The Railways realises that the dependence on one customer and one commodity has its pitfalls. The Railways can transport coal on the route only when PSEB wants it. For example, throughput this year is likely to remain virtually unchanged at the last year's level because the coal demand has remained stagnant, with the power houses holding sizeable stocks. The stocks have been built up because of the lower thermal power generation, thanks to the cushion provided by hydro-electric stations following a good monsoon.
The Railways, it is learnt, tried to explore the possibility of transporting coal from the same Pakur mines to other customers, though not with much success. PSEB did not agree to it. Rightly so. After all, the mines concerned at Pakur are PSEB's captive mines whose production is to meet only the requirements of designated generating units of PSEB.
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