Coal news and updates

The recent deadlock in Odisha’s Talcher mines under Mahanadi Coalfields Ltd (MCL) has cost the East Coast Railway (ECoR) dear.

 

For about five days from October 28, there was no production, loading and despatches of coal from the mines.

 

In normal situation, ECoR loads at least 10 sidings at Talcher totalling 36 rakes a day valued at Rs 8 crore approximately. In other words, in five days, ECoR lost 180 rakes of traffic valued at around Rs 40 crore.

 

Global coal siding

 

That is not all. A much greater loss is being suffered at Spur 3 and 4 under global coal siding of MCL. Loading in these spurs has remained suspended since October 17 due to dispute over the appointment of a new transport contractor by MCL authorities.

 

The average daily loading in two spurs being around 10 rakes, ECoR has already lost traffic worth 470 rakes valued at around Rs 100 crore.

 

With no sign of an early resolution of the stalemate, the loss, it is feared, will only keep on rising. In fact the root of the five-day deadlock affecting the entire Talcher mines could be traced to the problems at Spurs 3 and 4, according to informed sources.

 

Coal transportation

 

The loss to the economy in these five days has been much larger as coal transportation by MGR (merry-go-round) systems for NTPC’s Kanhia plant and Nalco’s Angul plant too remained suspended.

 

Even transportation by the conveyor system to Talcher themal power plant too could not take place. In short, it was a complete deadlock.

 

Inquiries with ECoR reveal that the work at the mines is limping back to normalcy since Tuesday (yesterday) after noon. But what has been particularly worrying for the railway and others is that the stalemate at Spur 3 and 4, the epicentre of the trouble continues.

 

The Talcher mines account for 100 per cent of ECoR’s loading of domestic coal. However, the share of Talcher mines in ECoR’s total coal loading is around 50 per cent with the balance 50 per cent being accounted for by loading of imported coal at the ports of Paradip, Visakhapatnam, Gangavaram and Dhamra.

 

 

Source: The Hindu Business Line