October 08, 2008

CIL and Indian Railway to work out a wagon loading program

FE reported that Coal India Limited and Indian Railways have agreed to work out a coalfield wise wagon loading program that is in tune with off take targets, with 21 of the 32 thermal power plants supplied by CIL facing critically low stocks. CIL's stand is that Indian Railway is not giving enough wagons on the other hand Indian Railway, while admitting to a shortage of wagons, feels that CIL can help by ensuring faster turnaround of rakes.

Mr K Ranganath marketing director of CIL said that 21 thermal power stations have stocks for only 7 days, while 11 have stocks of 8 to 10 days. He added that coal transport volumes have become larger and distances traveled longer, so there is a need to work out new strategies for evacuation. He said that "Unless CIL and Indian Railways work out a holistic strategy, the desired level of growth in coal off take cannot be achieved."

Mr RN Varma additional member for traffic at Railway Board said that CIL and Indian Railway have agreed to attune their functioning more closely, given that coal movement is expected to increase by 65 million tonne during 2008-09.

CIL aims to increase daily loading to 24,016 four wheeled wagons during 2008-09 as against 22,150 four wheeled wagons during the period April 2007 to February 2008. Going by CIL's production plan, it will need 32,500 wagons a day by the time the 11th Five Year plan ends in March 2012.

Total coal off take for 2007-08 is projected at 375 million tonne up by 24 million tonne on off take in 2006-07, with 207 million tonne to be moved by rail.