Cross-subsidy prevents Railways from offering discounts to CIL
Coal Insights|August 2020
Recent tussle between Coal India and Indian Railways over freight charges has brought into focus the dynamics of freight charges and overall logistics costs in our country, which, according to many studies are higher compared to global standards making India a high-cost place to do business.
Cross-subsidy prevents Railways from offering discounts to CIL

With an aim to emerge competitive with the coming of commercial mining era, Coal India had asked Indian Railways to offer 15 percent reduction in freight rates for transporting coal to power plants located at distances of beyond 701 km an up to 1,400 km.

The demand follows a move by the Railways authority to offer 20 percent concession on freight price for transporting coal and coke and other commodities beyond a distance of 1,400 km.

Coal India’s request has reportedly been turned down by the Railways with a reasoning that most of the coal traffic falls in the range of 700 km and 1,400 km and any steep discount for this lucrative segment would significantly impact Railway’s revenues.

In an era of monopoly, coal in this case, cost competitiveness, isn’t a necessity.

However, with the opening up of the coal mining sector, costs like Railway freight would now be weighted in not only by state-owned entities but private sector also.

In this context, it’s worthwhile to look at a recent study by ‘How India Lives’, an organization that studies spending trends.

Dynamics of Railway freight rates

Among the slew of activities that were disrupted and brought to a halt since the nation-wide lockdown, there were a handful that continued to run uninterrupted. One among them was Indian Railways ferrying goods.

Diese Geschichte stammt aus der August 2020-Ausgabe von Coal Insights.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

Diese Geschichte stammt aus der August 2020-Ausgabe von Coal Insights.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

WEITERE ARTIKEL AUS COAL INSIGHTSAlle anzeigen
SCCL's coal production up 64% in Q1
Coal Insights

SCCL's coal production up 64% in Q1

Coal production by SCCL during Q1 FY22 stood at 15.57mt, 64% higher than 9.50 mt achieved in Q1 FY21.

time-read
2 Minuten  |
July 2021
The UK to end thermal coal use in October 2024
Coal Insights

The UK to end thermal coal use in October 2024

The deadline to phase out coal from Great Britain’s energy system has been brought forward by a year as part of the UK government’s decision to go further in driving down emissions and tackling climate change.

time-read
8 Minuten  |
July 2021
Coal handled by major ports up 38.5% in Q1
Coal Insights

Coal handled by major ports up 38.5% in Q1

The 12 major Indian ports handled 39.37 million tons (mt) of coal (thermal + coking) during April- June of FY22, up by 38.5 percent from 28.42 mt recorded in the corresponding quarter of FY21, according to data released by the Indian Ports Association (IPA).

time-read
1 min  |
July 2021
Cement sector sees demand revival
Coal Insights

Cement sector sees demand revival

Retail demand was under pressure during the first two months of FY22 with April and May production falling by 12 percent and 17 percent respectively month-on-month (m-o-m) as per Index of Industrial Production data.

time-read
3 Minuten  |
July 2021
Indian Railways' coal handling up 42% in Q1
Coal Insights

Indian Railways' coal handling up 42% in Q1

Indian Railways in April-June of FY22 transported 157.78 million tons (mt) of coal, up by 42.4 percent from 110.80 mt handled in corresponding quarter of FY21.

time-read
1 min  |
July 2021
CIL's coal production up 2.4% in Q1
Coal Insights

CIL's coal production up 2.4% in Q1

Coal India’s (CIL) coal production during April-June quarter (Q1) of FY22 was up by 2.4 percent to 124 million tons (mt) as compared to 121 mt achieved during the same quarter last fiscal (FY21), according to (provisional) data released by the company.

time-read
1 min  |
July 2021
Coal Insights

India's May coal imports up 20% y-o-y

Coal and coke imports in May 2021 were up 20.44 percent year-on-year (y-o-y), according to import data available with Coal Insights. Imports rose to 19.92 million tons (mt) from 16.54 mt during May of previous year.

time-read
1 min  |
July 2021
There is still a long way to go to squeeze coal out: BP
Coal Insights

There is still a long way to go to squeeze coal out: BP

There are worrying signs that last year’s Covid-induced dip in carbon emissions will be short lived as the world economy recovers and lockdowns are lifted, says Bernard Looney Chief Executive Officer of BP in the recently published Statistical Review of World Energy 2021 published by the company.

time-read
4 Minuten  |
July 2021
“Growing Infrastrcuture is a big opportunity for OTR Tires in India”
Coal Insights

“Growing Infrastrcuture is a big opportunity for OTR Tires in India”

India is now considered to be the largest market for Off-the-Road Tires (OTR) used in construction & mining industry. The opening up of the coal sector has provided further push to the potential usage of such tires. And Balkrishna Industries Ltd, a global player with diversified portfolio under the BKT brand across agriculture, industrial, construction, earthmoving, mining and port is set to seize the opportunity. Rajiv Poddar, Joint Managing Director, Balkrishna Industries Ltd., tells Arindam Bandyopadhyay of Coal Insights about the opportunities and outlook for the sector and the company.

time-read
6 Minuten  |
July 2021
SCCL's coal production up 69% in May
Coal Insights

SCCL's coal production up 69% in May

After putting up a dismal performance last year, Singareni Collieries Company Ltd (SCCL) has started the new fiscal on a high note. Coal production by SCCL in May 2021 surged to 5.44 million tons (mt), about 68.56 percent higher than 3.23 mt achieved in the same month last year, according to (provisional) data released by the company.

time-read
1 min  |
June 2021