Coal India to run dumpers on LNG to bring down fuel cost

By: |
September 02, 2021 6:45 AM

If fact, CIL chairman and managing director Pramod Agarwal recently said that with auto-fuel prices rising to record high levels, CIL lost about Rs 700 crore because of high diesel rates in Q1FY22.

CIL, coal indiaThe Shakti scheme is seen as one of the major initiatives by the government which is hand-holding some power plants to come out of stress.

The Union coal ministry said that state-run miner Coal India (CIL) has initiated the process of retrofitting liquefied natural gas (LNG) kits in its dumpers, which will help it to cut diesel costs. CIL uses over 400 million litres of diesel per annum, with an annual expense of over Rs 3,500 crore. If fact, CIL chairman and managing director Pramod Agarwal recently said that with auto-fuel prices rising to record high levels, CIL lost about Rs 700 crore because of high diesel rates in Q1FY22.

“The company in association with GAIL (India) and BEML has taken up a pilot project for retrofitting LNG kits in its two 100 tonne dumpers working at the subsidiary Mahanadi Coalfields Ltd,” the statement said.

After retrofitting, these dumpers will be able to run on both LNG and diesel. “The dumper fleet consumes about 65% to 75% of total diesel consumed by the company and LNG will replace the use of diesel by about 30% to 40% and reduce the fuel cost by about 15%,” a senior CIL executive said.

The company has recently placed orders worth Rs 3,200 crore with Belarus-based mining equipment manufacturing company Belaz for 96 dumpers to speed up production in its coalfields. It has set capital expenditure target of Rs 17,000 crore for FY22, and significant amount of the amount will be spent on diversification projects such as solar power, thermal power plant, revival of fertilizer plants, coal bed methane and rail wagon procurement. In FY22, CIL is planning to procure high capacity equipment worth more than Rs 9,000 crore to buy one dragline, 35 shovels, 112 dumpers and 43 dozers.

CIL also aims to become a ‘net zero energy company’ by 2024 by developing 3,000 MW of solar power projects and commissioning energy efficiency projects. The company has also incorporated two subsidiaries: CIL Navikarniya Urja Ltd to venture into renewable energy and CIL Solar PV Ltd to manufacture solar photovoltaic cells and modules. CIL Solar PV Ltd will also be applying for benefits under the Centre’s Rs 4,500 crore production linked incentive scheme.

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