SECL is executing eight ‘first mile connectivity’ projects with an estimated capital outlay of Rs 3,100 crore. This aims to evacuate dry fuel, especially incremental production under proposed plan to scale up output to 1 billion tonnes. The move will also help power plants at farther most locations in northern and western regions. These plants can avail recently notified rail concessions for distance beyond 1,400 km.
“Company is executing many coal evacuations projects under FMC to evacuate coal, especially huge incremental production under proposed 1BT plan. The projects shall be executed with estimated capital-outlay of more than Rs 3,100 crore.” South Eastern Coalfields Ltd (SECL) said in a report.
The company said because of move, there would be reduction in cost of landed price of coal at generators end. This will retain the foreign exchange by substituting the coal imports with abundant domestic supplies.
“New SILOs at Gevra, Dipka and Kusmunda along with rapid loading systems, in-pit conveyors, surge bins, large capacity bunkers and rail linkages etc. will provide adequate evacuation infrastructure commensurate with the higher level of production,” it said.
In the absence of conclusive overall environment benefits at the additional cost of power generation, recently the government had dispensed with the mandatory coal washing to reduce ash in the coal supplies to power plants. It adduces larger role of the suppliers to ensure quality and size in the offerings to balance the environmental concerns. It is likely to capture the demand for easing supplies from sources. However, this will require huge enabling infrastructure for coal evacuation.
