Domestic thermal coal availability will improve significantly in the second half of the year with the completion of the 45-km Tori-Shivpur rail link, in Jharkhand, helping evacuation of at least 10 rakes (of 3,800 tonne each) daily from the vast Magadh and Amrapali reserves.

Though targeted to be readied in July, sources said, it may be delayed by a month or two due to excessive rains.

Evacuation constraints

Development and production from both the mines are restricted for the last two decades, due to evacuation issues. To solve the problem, the 90-km loop from Tori (near Ranchi) to Kathautia (near Hazaribagh), connecting the Hazaribagh-Kodarma line, was planned in 1998.

As per the project proposal, the Tori-Shivpur-Kathautia line could help extract roughly 100 million tonnes of coal annually.

But, that was all on paper, project implementation barely progressed till about four years ago, when the Narendra Modi government decided to complete three rail links – 53.5 km Jharsuguda-Barapali in Odisha; 45 km Tori-Shivpur and; 90 km Kharsia-Dharamjaygarh in Chhattisgarh on priority basis.

Of the three, Jharsuguda-Barapali rail link started operating early this year, connecting Sundergarh district of Odisha which can produce up to 80 million tonnes of fuel a day. Kharsia-Dharamjaygarh project is expected to complete next year.

On the proposed Tori-Shivpur line connectivity is established upto Balumath, helping Coal India to resort to pace up evacuation from Magadh and Amrapali mines using road-cum-rail option.

The scope of fuel evacuation will increase 10 times once the rail connectivity is established upto Shivpur.

Shortage concerns

While completion of key infrastructure projects will surely improve domestic coal availability this year, it is debatable if the overall fuel shortage will be mitigated as demand for fuel and price of imported fuel are at multi-year high.

Currently, nearly 90 per cent of the supplies are directed to power plants, depriving customers from steel and cement sectors.

Many expect that monsoon will bring a change in the dynamics.

“We are expecting demand from the power sector to subside by July-August, helping us to resume normal supplies to non-power customers,” said a CIL source.