Mjunction auctions 11,00,000 tonne of NLCIL coal to supplement CIL supplies

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October 23, 2021 4:14 AM

The 43 operational mines have a peak rated capacity of 145 million tonne. These mines produced 37.5 MTS last fiscal and has set a target to produce around 82 MTs this fiscal. But till September, these mines have produced a little more than 20 MT.

Although neither NLCIL nor Mjunction wanted to disclose the amount lifted off the offered quantity or the premium fetched from the auction, a ministry official said only NLCIL has supported with supplies at the hour of crisis.Although neither NLCIL nor Mjunction wanted to disclose the amount lifted off the offered quantity or the premium fetched from the auction, a ministry official said only NLCIL has supported with supplies at the hour of crisis.

NLCIL, erstwhile Neyvelli Lignite Corporation, has offered 11,00,000 tonne of coal from its Talabira -2 &3 open cast mines in Odisha on Mjunctions’s e-market place as a measure to make some coal available to consumers at a time when Coal India ( CIL) has suspended e-auctions for traders and non-power consumers.

NLCIL had offered coal between a gross calorific value of 3,101 and 3,400 at a reserve price of Rs 2,492.93 per tonne. Although neither NLCIL nor Mjunction wanted to disclose the amount lifted off the offered quantity or the premium fetched from the auction, a ministry official said only NLCIL has supported with supplies at the hour of crisis.

West Bengal Power Development Corporation (WBPDCL) that normally takes 15 rakes or 60,000 tonne of CIL coal a day has reduced it to six rakes a day, with each rake containing 4,000 tonne. It has sourced the balance of supply from Tara East and West blocks, state power minister power Aroop Biswas said, adding West Bengal has been one of the very few states that had reduced coal intakes from CIL when the company had to rush the mineral to power plants with critical stock situation. The state’s discom, which supplies power to 86% of its consumers, has to source 60% of its power requirement from WBPDCL with which it has long-term PPAs. NTPC’s Farakka thermal power station has failed to give West Bengal the required supply for want of coal, Biswas said.

However, NLCIL has supplied additional 50,000 tonne each to NTPC’s Darlipali thermal power station in Odisha and NTPC’s Lara TPS in Chhattisgarh. But there are no reports of any of the 43 captive mines augmenting production despite the Centre allowing sale of 50% of their excess production in the open market.

The 43 operational mines have a peak rated capacity of 145 million tonne. These mines produced 37.5 MTS last fiscal and has set a target to produce around 82 MTs this fiscal. But till September, these mines have produced a little more than 20 MT.

The ministry official said captive mines that can augment production would be shortly identified but ramping up output cannot happen overnight since extracting coal depend on strike length, mine design and the equipment available with them. The ministry will assess the planning of those mines, according to which actions will be taken, he said.

NLCIL, operating Talabira -2 and 3 mines, have an annual capacity of 20 MT. But has targeted producing 10 MTS by the fiscal-end and reach 20MTS the next fiscal.

CIL, on the other hand, plans to deploy more mine development operators (MDOs) to augment production, for which it has already lined up investments worth Rs 47,300 crore to expand capacity of its 24 existing projects, and start eight new projects. The 32 new projects would give it an incremental production of 496.5MTPA over the years but the 24 existing projects, which have a sanctioned capacity to produce 303.5 MTPA, will produce 193 MTPA above the sanctioned capacity with the miner aiming to produce 81 MTPA of its targeted 193 MTPA by 2024.

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