CIL gears up for stock liquidation

Kolkata, May 25 (UNI) Coal India Limited (CIL), the public sector coal behemoth, which began the fiscal 2007-08 with an accretion of 42.8 Million Tonnes (MTs) of coal at its pitheads, is gearing up for liquidation of accumulated stock.

A company release said here today that having earmarked 2007-08 as 'Year of Off-take', CIL seeks to evolve a system with Railways to spread availability of wagons matching with the seasonal fluctuations in production. Generally there is a sluggish trend in coal production during monsoon. The mismatch between requirement of wagons and their availability in peak production months is a major concern for CIL and results in accumulation of coal stock at pithead.

Senior officials of CIL and Railways met today in the city in 'Rail-Coal Interface Meet'-- an annual ritual where Coal India and Indian Railways deliberate and work out strategies for mutual growth. CIL team, led by CIL Chairman P.S.Bhattacharya, CIL Director (Marketing) K.Ranganath and CIL Director (Technical) N.C.Jha.

Railway team was led by Adviser (Traffic), Railway Board, S.R.Thakur, accompanied by Mr R.S.Pandey, COM, East Central Railway, Mr A.K.Gupta, EDRM, Railway Board and other senior officers from Zonal Railways.

While annualised growth rate of coal production during 10th Plan Period (2002-03 to 2006-07) hovered between 5 and 6 per cent, during 11th Plan period, the Ministry of Coal has envisaged a growth of 9.7 per cent growth for the coal sector.

CIL is expected to produce 520.5 MTs by 2011-12 involving a production augmentation of 157 MTs during a single Five-Year Plan period which is almost twice of the maximum growth achieved in Plan Period so far.

To transport the coal thus produced to consumer destinations, CIL is expected to load 24392 Four Wheeler Wagons (FWWs)/per day during 2007-08 from a level of 21927 FWWs/day achieved during the previous fiscal - a growth of 11 per cent. Wagon requirement by the terminal year of XI Plan (2011-12) is expected to be around 32500 FWWs/day, calling for annualized growth of more than 7 per cent in coming years.

Of the total coal traffic of 314 MTs by Indian Railways in 2006-07 Coal Indias's contribution alone at 199 MTs accounted for 63.4 per cent. CIL's contribution to originating traffic of Indian Railways had been 27.2 per cent and had been larger than that of combined total of Oil Sector, Steel Plants and freight generated by more than 100 cement plants together.

The release said coal earning a revenue of Rs 15,830 crores contributed to 37.9 per cent of total revenue earning of Indian Railways during 2006-07.

Major incremental loading is expected from Talcher, Korba, Ib valley and Karanpura fields. Coal companies were endeavouring for large scale mechanisation in production and matching evacuation facilities. Upgradation of existing tracks, including development of trunk corridors for coal traffic, and dedicated rolling stocks for coal traffic are vital necessities.

Rail Coal Interface seeks to formulate field-wise wagon loading programme attuned to off-take target in order to ensure optimum utilszation of infrastructure available with Coal companies and Railways.

UNI