NCL’s claim of raising FSA coal quantities is significant at a time when a number of power projects across the country are suffering from the shortage of the fuel and most of the Coal India subsidiaries are recording muted production growth.
With rising production in its mines, Northern Coalfields (NCL) — a subsidiary of Coal India — can revise the existing fuel supply agreements (FSAs) to provide more coal than it currently does, senior officials of the company have said.
“Once the railway evacuation infrastructure upgrades are complete, we are open to supply more coal to power plants as we are capable of producing more even after meeting 100% supply contracts”, Prabhat Kumar Sinha, CMD, NCL, told FE.
The company joined the 100-million- tonne-plus coal production club in FY19, when it mined 101.5 MT of the fuel, recording an annual growth of 9.1%.
“The company will easily achieve the 106.3 production target for FY20,” Sinha said while speaking at a conference on opencast mining technology here on Friday. Though the 312 square kilometre mining area of NCL comprises a small portion of Coal India’s total area under production, the subsidiary contributed 17% of the national miner’s total output in FY19.
NCL’s claim of raising FSA coal quantities is significant at a time when a number of power projects across the country are suffering from the shortage of the fuel and most of the Coal India subsidiaries are recording muted production growth. Around 50% of the company’s output is supplied to NTPC’s Singrauli, Vindyachal and Rihand power plants and another 20% is supplied to the Uttar Pradesh’s state-owned electricity generation units of Anpara and Obra.
The existing evacuation facility helps NCL transport only 69 MT coal to the nearby thermal power plants every year. The future transportation capacity expansion plan envisages another 40 MT through new railway tracks. The 39 kilometer Karela-Shaktinagar line has recently been completed. The upcoming railway projects in their advanced stages are the 64 kilometer Chopan-Singrauli line, the 262 kilometer Singrauli-Katni track.
“We can increase our production 1.5 times when these railway tracks come online,” Sinha added.
(Travel for this report was sponsored by NCL)