The merry-go-round system set to handle more of Coal India output

The merry-go-round system, a closed-circuit dedicated rail transportation system between the production and the consumption points, is set to handle more of Coal India Ltd’s production in the coming years than at present.

“Within one year, the MGR system will handle an estimated at 110-120 million tonnes (mt), up from the present 84 mt annually”, S. Narsing Rao, CMD of Coal India Ltd, told Business Line. “Right now, the MGR system handles seven mt a month on an average”.

This would be possible because, as Rao explained, the new MGR systems were being installed and the existing systems upgraded. For example, the new 10 million tonne a year capacity, MGR system, to be commissioned shortly at Kanhia mines under Mahanadi Coalfields Ltd is to facilitate coal transportation to NTPC’s thermal power plant at Talcher in Odisha. The existing 10 mtpa MGR system connects MCL’s Lingaraj mines to the NTPC plant.

CIL’s total despatch of coal so far this fiscal has been 292 mt and the shares of different modes of transportation were as follows: rail 146 mt, road 84 mt, MGR system 55 mt and conveyor system seven mt.

East Coast Railway (ECoR) that transports coal from MCL mines to NTPC’s Talcher plant does not seem unduly worried at the prospects of loss of traffic to be caused by the commissioning of a MGR system at Kanhia.

“At present we load two rakes a day on an average at Kanhia for the NTPC plant which is installing 10 mtpa MGR at Kanhia keeping in view the projected future requirement to be thrown up by the capacity expansion of the plant now in progress”, a spokesman for ECoR told Business Line.” Right now the average daily coal loading at Talcher mines is more than 31 rakes. “Barring unforeseen developments, the current fiscal should end up with a throughput of 30 mt at Talcher mines”, he added.

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