CHANDIGARH: Irregular and tardy coal supply in Punjab, with the state getting only around 25 to 30 rakes of coal daily from the pit heads in the eastern states, is preventing the replenishment of stocks for its thermal power plants. While the pre-Covid daily supply was between 40 and 45 rakes, the current grim situation, worsened by the rains, can potentially impact power generation across Punjab. This is in the face of the Railways giving 40 per cent discount in rates for transportation of fly ash to private cement manufacturing companies.
Railways sources said that the pre-Covid period saw Punjab and Haryana receiving around 90 to 110 rakes, daily transporting commodities, fertilisers, food grains, coal and other raw material. The figure now stood at 80 to 90 rakes daily, the sources added.
When the Covid pandemic hit, the number of coal rakes reaching the two states went down to 50 to 60 before touching only 25 to 30.“In each rake, 58-60 wagons carried 4,000 metric tonnes of coal. The cost involved was about Rs 1 crore per rake. Depending on the quality, coal costs at pitheads in Jharkhand and Odisha vary between Rs 1,800 and Rs 2,200 per tonne. With freight charges at Rs 2,700 per metric tonne, the rakes covered distances ranging between 1,400 and 1,600 km, taking three to nine days for the coal to reach their destinations in Punjab and Haryana. The total fuel cost for the thermal plants is Rs 4,500 and Rs 4,900 per tonne,” an official explained.
The Railways, sources said, devised several freight policy measures such as a 20 per cent rebate on freight charges on long lead traffic for coal, coke, iron ore and steel and a 25 per cent concession on haulage charges for empty containers and wagons. At the same time, to enhance rake utilisation, the Railways also offered a 40 per cent discount for transportation of fly ash, a major raw material for cement manufacturers.
Surprisingly, however, the 20 per cent rebate for long lead traffic on iron ore and steel was withdrawn on June 30, 2021, and the discount for coal and coke ended on December 31 of the same year. The 40 per cent rebate on transportation of fly ash, however, continues.
Sources said the state government repeatedly pleaded with the Railways to extend the 20 per cent discount as it directly impacted power cost which is subsequently passed on to consumers. At the same time, thermal power plants are not getting sufficient rakes despite being prepared to pay a 115 per cent premium over the base freight.
When contacted, Rajeev Jain, Spokesman and ADG Ministry of Railways, sought a written questionnaire which he did not respond to. Avinash Mishra, Executive Director (Coal) at the Railway Board refused to comment.