August 29, 2008

CIL urges Indian Railways to increase wagons supply

Mr PS Bhattacharyya chairman of Coal India Limited while addressing at "Rail Coal Interface Meeting” requested Indian Railways to extend more cooperation and co ordination to step up coal movement by increased wagon supply. Rolling stock and infrastructure issues were also discussed at the meeting, which formulated a field wise wagon loading program in keeping with coal off take target.

Mr Bhattacharyya said that under CIL’s production plan, wagon requirement at the end of 11th Five year Plan would be around 32,500 wagons per day, indicating annualized growth rate of 10% in coming years. Of the incremental off take of 24 million tonnes, movement in 2007-08 by rail was about 8 million tonnes while overall coal transportation through rail was 55%. Coal imports would rise from 2008-09 and CIL would import coal too for domestic buyers. He added that "The 11th Plan is going to be different from the earlier plans in respect of quantum jump required in rate of coal production and evacuation."

Mr K Ranganath marketing director of CIL said that “Coal is shipped largely by Indian Railways and as volumes were large and distances longer, needs had changed. This could require new guidelines to work out the strategies in coal evacuation. While 21 thermal power stations as on date were at critical level carrying coal of less than 7 days, 11 were on the verge of becoming critical. Up gradation of existing tracks, including development of trunk corridors for coal traffic, and dedicated rolling stocks for coal traffic are vital necessities.”

He added that CIL’s total off take till February 2008 was 339 million tonnes, of which 170 million tonne was by rail up by 4.2% YoY compared to same period previous year. From a level of loading 22,150 four wheeled wagons per day between April 2007 and February 2008, CIL expected to improve loading to 24,016 four wheeled wagons a day in 2008-09.

Total coal off take for 2007-08 was expected to be 375 million tonnes, 24 million tonnes over the previous fiscal. Of this, 207 million tonnes would move by rail with major incremental loading from MCL, SECL, MCL and CCL fields. Wagon requirement was likely to increase to 25533 wagons per day for evacuating accumulated pithead stock. This meant more than 7% growth in wagon loading is projected for 2008-09, which could rise to 14% if stock liquidation program was implemented.

Mr RN Varma additional member of railway board said that coal continued to be the largest commodity for Indian Railway traffic and 65 million tonne increase in movement was expected in 2008-09. He added that infrastructure development and investment planning would be done to meet CIL’s demand. India Railways would bring in new technology and new wagons with higher axle load and reduce tare weight.