Rationalisation of coal linkages with power plants would result in savings of about Rs 1,114 crore on account of transportation costs.
"Rationalisation of sources of coal...Will result in decongestion of the railway network and improved materialisation of coal at the thermal plants," Coal India Ltd Director (Marketing) B K Saxena said during a workshop.
"The whole exercise may lead to estimated savings in transportation costs to the tune of Rs 1,114 crore approximately," he added.
An added benefit would be offloading MCL's (Mahanadi Coalfields Ltd, a CIL subsidiary) 15 million tonnes of coal, which is presently overbooked with linkages, Saxena said, while making a presentation on rationalisation of sources of the dry fuel that are achievable and could give savings immediately.
The basic criteria on identification of these proposals include proximity of the plants, availability of coal at different subsidiaries, consent of consumers for shifting of the sources, operational feasibility of the railway network and environment ministry stipulations.
Finance Minister Arun Jaitley had earlier said that an exercise to rationalise coal linkages, which will optimise transport of coal and reduce cost of power, was under way.
The government had earlier constituted an inter-ministerial task force to review the existing sources and consider feasibility for rationalisation of linkages with a view to reducing the transportation cost for power utilities, cement, steel and sponge iron sector.
Coal India Misses April-December Output Target by 3%
Coal India recorded an output of 342.39 million tonnes (MT) in April-December 2014, missing its production target by 3 per cent for the period.
The coal giant had fixed an output target of 353.47 MT for the first nine months of current fiscal.
The offtake of coal at the miner’s end stood at 354.60 MT during the period this year, down by 6 per cent against the target of 376.65 MT, according to a BSE filing by the coal PSU.
For December 2014, Coal India production was at 47 MT against a target of 47.93 MT. The offtake of dry fuel was at 43.91 MT during the month against the targeted 46.49 MT.
However, no reason was given by the PSU for missing both output and offtake targets. Coal India’s production target for 2014-15 has been set at 507 MT.
The centre has announced plans to boost Coal India’s annual production to the level of 1 billion tonnes by 2019 to meet growing fuel demand. However, the company has successively missed its output targets.
Coal India, which accounts for 80 per cent of domestic coal production, missed its output target of 482 million tonnes for 2013-14, producing 462 million tonnes during the period.
Production fell short of target because of various reasons, including lack of environment clearance to coal mining projects.
In 2012-13, the company produced 452.5 million tonnes of coal, falling short of the 464 MT target.
Shares of Coal India were trading at Rs 385 apiece on BSE, up 1.24 per cent against the previous close.
"Rationalisation of sources of coal...Will result in decongestion of the railway network and improved materialisation of coal at the thermal plants," Coal India Ltd Director (Marketing) B K Saxena said during a workshop.
"The whole exercise may lead to estimated savings in transportation costs to the tune of Rs 1,114 crore approximately," he added.
An added benefit would be offloading MCL's (Mahanadi Coalfields Ltd, a CIL subsidiary) 15 million tonnes of coal, which is presently overbooked with linkages, Saxena said, while making a presentation on rationalisation of sources of the dry fuel that are achievable and could give savings immediately.
The basic criteria on identification of these proposals include proximity of the plants, availability of coal at different subsidiaries, consent of consumers for shifting of the sources, operational feasibility of the railway network and environment ministry stipulations.
Finance Minister Arun Jaitley had earlier said that an exercise to rationalise coal linkages, which will optimise transport of coal and reduce cost of power, was under way.
The government had earlier constituted an inter-ministerial task force to review the existing sources and consider feasibility for rationalisation of linkages with a view to reducing the transportation cost for power utilities, cement, steel and sponge iron sector.
Coal India Misses April-December Output Target by 3%
Coal India recorded an output of 342.39 million tonnes (MT) in April-December 2014, missing its production target by 3 per cent for the period.
The coal giant had fixed an output target of 353.47 MT for the first nine months of current fiscal.
The offtake of coal at the miner’s end stood at 354.60 MT during the period this year, down by 6 per cent against the target of 376.65 MT, according to a BSE filing by the coal PSU.
For December 2014, Coal India production was at 47 MT against a target of 47.93 MT. The offtake of dry fuel was at 43.91 MT during the month against the targeted 46.49 MT.
However, no reason was given by the PSU for missing both output and offtake targets. Coal India’s production target for 2014-15 has been set at 507 MT.
The centre has announced plans to boost Coal India’s annual production to the level of 1 billion tonnes by 2019 to meet growing fuel demand. However, the company has successively missed its output targets.
Coal India, which accounts for 80 per cent of domestic coal production, missed its output target of 482 million tonnes for 2013-14, producing 462 million tonnes during the period.
Production fell short of target because of various reasons, including lack of environment clearance to coal mining projects.
In 2012-13, the company produced 452.5 million tonnes of coal, falling short of the 464 MT target.
Shares of Coal India were trading at Rs 385 apiece on BSE, up 1.24 per cent against the previous close.
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