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| ECL eyes Rs 600-650cr additional revenue |
| BS Reporter / Kolkata Aug 31, 2009, 00:14 IST |
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To sell grade ‘A’ and ‘B’ coal to power utilities
Eastern Coalfields Limited (ECL), a subsidiary of state-run Coal India Limited might earn additional revenues worth Rs 600-650 crore through the sale of grade 'A' and 'B' coal to power utilities this year.
Speaking on the sidelines of the 78th annual general meeting of Indian Coal Merchants' Association, A K Sarkar, director(marketing), CIL, pointed out that ECL which has heavy burden of liabilities might earn Rs 600-650 crore additional revenues through sale of grade 'A' and 'B' coal which have are import equivalent.
ECL entered into a long term bilateral fuel supply agreement with West Bengal Power Development Corporation Limited, Damodar Valley Corporation and CESC.
ECL will be supplying close to five million tonnes of high grade coal to these three companies this year.
Grade 'A' and 'B' coal having high gross calorific value with low ash content are in high demand with power utilities.
Grade A & B variety coal are however limited in production and therefore high in demand. Almost 75 to 80 per cent of raw coal is still of inferior quality and of low heat value. Production of superior variety of grade A & B coal is hardly 5 to 6 per cent of the total production.
Some six years back in 2001-02, production of these two grades of coal came to 25.5 million tones and in 2007-08 the figure moved to 26.9 million tones.
ECL and SECL are the two prime source of these two high grade coals.
ECL has initiated a drive for a 3.5 million tonnees increase from underground production in the coming years.
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