Northern Coalfields Ltd. supplies 87% of its coal to power producers in FY21

Coal India Ltd (CIL) arm Northern Coalfields Limited (NCL) supplied 87 per cent of its total coal to electricity producers during the last fiscal year. There was also about 14 per cent increment year-on-year in the average supply of coal rakes to upcountry consumers, the PSU said in a statement.

Northern Coalfields Ltd (NCL), the Singrauli-based mini-ratna company, surpassed its fiscal production milestone of 113 million tonnes (MT) and produced 115.05 MT in 2020-21 with 6.47 per cent year-on-year growth. The company has also surpassed its annual overburden removal (OBR) target of 370 million cubic metre, and removed a whopping 374.17 million cubic metres of overburden with a year-on-year growth of 15.76 per cent in the last fiscal year, it said.

Overburden is the material above coal seam that is required to be removed above coal layer for ready exposure. OBR is an important factor to determine a mining company’s output and growth. 

Promoting the sustainable and green mode of transportation, the company has supplied 12 per cent more coal using rail mode to consumers, it said. Also, 2.3 per cent growth was observed in Merry-Go-Round (MGR) mode of coal transportation, the company said. NCL supplies about 52 MT of coal through dedicated MGR transportation mode which is directly linked to thermal power plants. Merry-Go-Round (MGR) involves a dedicated rail network from coal projects to pit head power plants for transporting coal from coal mines to power plants.

In a crucial pro-environmental step, a remarkable decline of 24 per cent was seen in coal transportation through road mode in spite of year-on-year growth in the company’s coal dispatch. NCL operates with 10 highly mechanised opencast coal mines spread in Singrauli and Sonbhadra districts of Madhya Pradesh and Uttar Pradesh, respectively.

NCL is eyeing 130 million tonnes of coal production by 2023-24.

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