Western Coalfields Limited (WCL) increased coal production to 57.6 million tons in the fiscal year 2019-20 and provided it to government and private thermal power stations in Central, West and South India at a low cost. The move has helped thermal power producers to reduce the electricity supply rate for consumers, WCL said.
WCL is a subsidiary of the company Coal India Limited (CIL). In 2013-14, coal production decreased to 39 million tonnes. As a result, some of WCL ‘s largest customers, such as Maharashtra State Power Generation Co Ltd. (MAHAGENCO), Madhya Pradesh Power Generating Co. Ltd. (MPPGCL), Gujarat State Electricity Corporation Limited (GSECL) and Karnataka Power Corporation Limited (KPCL) had to buy coal from CIL’s other subsidiaries, such as SECL, MCL and SCCL. But longer distances have led to higher transport costs being added to production rates.
According to WCL, 20 mines with a capacity of 45.64 million tons have been opened in the last five years. In fiscal 2019-20, these mines produced 35.8 million tons of coal. As a result , the company’s production increased to 57.6 million tons and was able to meet the coal requirements of its customers.
MAHAGENCO is one of the largest consumers of WCL coal, 50 percent of which goes to the said power generator. According to WCL, 17,60 million tons of coal were supplied to MAHAGENCO during the 2013-14 fiscal year. It increased its supply to 27 million tons in the fiscal year 2019-20. “Owing to the additional purchase coal from WCL, MAHAGENCO was able to save an average of Rs 1,200 per ton in freight/rental,” said WCL in a statement.
In order to make more coal available to energy consumers, WCL also identified 11 mines as “mine-specific sources” dedicated to the power sector.
WCL plans to increase production from the current 57,6 million tons to 75 million tons by fiscal year 2023-24 and 100 million tons by 2027-28.
