SECL plans 8 projects worth Rs 3,100 cr for improving coal evacuation

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Updated: Oct 18, 2020 11:42 AM

The move will also help power plants at farther most locations in northern and western regions to avail recently notified rail concessions for distance beyond 1400 km.

Coal India accounts for over 80 per cent of domestic coal output.

Coal India-arm SECL is executing eight ‘first mile connectivity’ projects with an estimated capital outlay of Rs 3,100 crore to evacuate dry fuel, especially incremental production under the proposed plan to scale up the maharatna firm’s output to 1 billion tonnes.

The move will also help power plants at farther most locations in northern and western regions to avail recently notified rail concessions for distance beyond 1400 km.

“Company is executing many coal evacuation projects under the First Mile Connectivity (FMC) in order to evacuate coal, especially huge incremental production under proposed 1BT plan….The FMC projects (8nos.) shall be executed with an estimated capital outlay of more than Rs 3,100 crore,” South Eastern Coalfields Ltd (SECL) said in a report.

The company said because of the move, there would be reduction in the cost of landed price of coal at generators end and retain the foreign exchange by substituting the coal imports with abundant domestic supplies, it said.

“New SILOs at Gevra, Dipka and Kusmunda along with rapid loading systems, in-pit conveyors, surge bins, large capacity bunkers and rail linkages etc. will provide adequate evacuation infrastructure commensurate with the higher level of production,” it said.

In the absence of conclusive overall environment benefits at the additional cost of power generation, recently the government had dispensed with the mandatory coal washing to reduce ash in the coal supplies to power plants.

“It will make more obvious sharing of responsibility towards environment in supply and conversion of coal based thermal energy between the miners and the generators respectively,” it said.

It adduces larger role of the suppliers to ensure quality and size in the offerings to balance the environmental concerns. It is likely to capture the demand for easing supplies from sources, which will require huge enabling infrastructure for coal evacuation.

Coal India accounts for over 80 per cent of domestic coal output. It is eyeing one billion tonnes of output by 2023-24.

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