The Hindu Business Line : Poor monsoon boosts coal production

THOUGH the inadequate monsoon has posed a problem for the agricultural sector, this has been welcomed by the coal producing companies as well as bulk coal consumers, particularly thermal power stations.

Coal companies are happy because the production during the current monsoon season has improved due to uninterrupted work, while coal consumers have received more rakes of coal. Coal production, both in opencast and underground, generally gets affected during the monsoon season.

Many mines even get inundated. Similarly, movement of coal by rail to long distance consumers suffer due to loading and unloading problem.

However, with an increased production of about six million tonnes (mt) by Coal India Ltd (CIL) during April 1 to July 23, compared to the same period last year coal availability even in the coastal States has improved to a moderate extent.

Many industries, which depend on imported coal have got the " limited option" to replace some quantity of their costly imported non-coking coal with comparatively cheaper varieties of domestic coal.

According to the latest official figures available with Business Line, almost all production subsidiaries of CIL have been able to produce more in this monsoon season (till July 23) due to uninterrupted production.

CIL produced over 89 mt coal during April 1-July 23, as against 83.5 mt achieved during the same period last year and against the target of 86.5 mt for the current period under review.

Of the total production, Eastern Coalfields Ltd (ECL) contributed about 7.15 mt (6.87 mt), Bharat Coking Coal Ltd (BCCL) about 6.23 mt (6.06 mt), Central Coalfields Ltd (CCL) about 8.57 mt (9.22 mt), Western Coalfields Ltd (WCL) about 11.78 mt (11.13 mt), Northern Coalfields Ltd (NCL) about 13.34 mt (12.67 mt), South Eastern Coalfields Ltd (SECL) about 22.55 mt (20.17 mt) and Mahanadi Coalfields Ltd (MCL) about 19.47 mt (16.29 mt).

A CIL source said CCL failed to take the advantage of inadequate monsoon syndrome largely due to local law and order problem.

In fact, upset by the law-and-order situation in the mining areas controlled by the company, the incumbent Chairman & Managing Director of CCL, Mr J.P. Sharma, is believed to have sought pre-mature retirement.

All CIL subsidiaries together dispatched about 96.2 mt coal during April 1-July 22(89.5 mt) and in view of higher dispatch, the stock position at thermal power plants has improved.

According to CIL source, total coal stocks with thermal power stations in the country would now be about 8.5 mt, which is sufficient to take care of any disruption in dispatches or movement of coal in the remaining weeks of the current monsoon.

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