BL reported that Vasundhara is an asset that can easily produce up to 70 million tonnes of thermal coal, large enough to fuel 14,000 MW power capacities. It also has ready environment clearance for stepping up production by 10 million tonnes.

Yet, Mahanadi Coalfields, a wholly owned mining subsidiary of Coal India Limited, has no plans to produce an extra kilogram of coal from this mine in the next 4 to 5 years, if not more.

Because, in the absence of rail link, the mine cannot dispatch even the existing production of 12 million tonnes, earning it the distinction of single largest contributor to CIL's monumental 70 million tonnes idle stock as in last fiscal. As on March 31st 2012, Vasundhara had a pit head stock of 8 million tonnes, equivalent to nearly 67% of its annual production.

The mine alone contributed over 40% of MCL's total stock of 18 million tonnes coal as in 2011-12. And, since coal catches fire, if exposed in the open for long, one may expect a good part of this 8 million tonnes stock has actually been destroyed.

MCL authorities blame an inordinate delay by Indian Railways in implementing a company funded, 52 kilometers Jharsuguda Barapali rail link, connecting Barapali at the mine end to the South Eastern trunk route at Jharsuguda as a spoilsport.

Conceptualized at least a decade ago, the project finally took shape in 2005 when RITES (a project construction arm of Indian Railways) was assigned to implement the INR 469 crore rail link with a capacity to evacuate 35 million tonnes of coal annually from Vasundhara, latest by 2009.

As things stand now, on behalf of RITES, South Eastern Railway (SER) has started construction work in 24 kilometers (out of 54 kilometers) of the proposed line at the Jharsuguda end.

Meanwhile, the estimated cost of the project has gone up by over 50% to INR 720 crore.

A senior MCL official told Business Line that "Considering a minimum of three years implementation schedule, we don’t foresee the line being ready before 2016."

He wouldn't be surprised if the project runs further cost and time over run. And, unless the line connects the mine end, the project is of little use to the company.

MCL sources said that "Presently the nearest railway siding is 35 kilometers away from the mine. To pace up evacuation we need the railway siding at pit head."

Source - Business Line

(www.coalguru.com)