CIL planning measures to ease fuel supply

  • PTI, New Delhi
  • Updated: Sep 07, 2014 12:28 IST

State-owned Coal India Ltd (CIL) is planning to take steps to clear fuel supply bottlenecks, including augmenting output to 615 MT by FY'17, against the backdrop of the 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.

The 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 company also envisages to produce in an optimistic scenario, 615 MTs of coal by terminal year of XII Five Year Plan (2016-17)," it said.

The PSU dispatched 353.83 million tonnes (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.

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

"Our company also met around 86% of supply under FSA (Fuel Supply Agreement) commitments to power utilities, including 99% 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 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.

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