Shortage gives Rlys a ~1,000-cr windfall

Indian Railways has earned close to ~1,000 crore more by ferrying imported coal in six months (April-september) this fiscal year (2021-22). According to the official data, cumulative freight earnings from imported coal stood at ~4,598.88 crore during the period, up from ~3,682.32 crore till September last. This was at a time when there was perceived coal shortage, with power plants struggling to meet needs.

The highest earnings from imported coal were reported in April at ~840.28 crore, up from ~445.69 crore in April last.

Total imported coal loaded during the six-month period stood at 45.87 million tonnes (mt), up from 37.24 mt during the same period last fiscal year.

This is expected to go up further, with the Union power ministry’s directive to thermal power generators to import coal for at least 10 per cent blending, citing shortage of domestic coal supply. This is a sharp reversal of its earlier directive of using domestic coal.

“Thermal power plants, based on domestic coal, will use imported coal of up to 10 per cent for blending with domestic coal, wherever technically feasible, to meet the increased power demand in the country. Power generation companies shall expedite the process of importing coal for blending to meet the requirement,” stated a notification on Tuesday.

Total coal movement by train also reported an uptick at 257.09 mt during the period under review, up from 197.03 mt in the comparable months of last fiscal year.

Correspondingly, earnings from domestic coal movement rose over 53 per cent to ~25,705.90 crore, up from ~16,760.21 crore. This is likely to improve the Railways’ operating ratio - a measure of financial performance of the national transporter. Thermal power plants are, however, reporting lesser availability, notwithstanding higher coal movement.

According to the fuel management division of the Central Electricity Authority, the technical arm of the power ministry, the share of coalbased generation increased to 66 per cent, from 62 per cent in 2019, during the August-september period. It further said the coal stock at power plants was fast depleting and currently stood at 7.3 mt.

Multiple arms of the government are coordinating to address coal supply issues in the country. The coal ministry was directed to increase coal supply, while the Railways was told to make more rakes available for coal supply to power plants at this meeting.