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KSK Mahanadi Power Company Limited

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KSK Mahanadi Power Company Limited South Eastern Coalfields Limited (A Subsidiarv of Coal India LimitedlA Miniratna PSU) C~N:U10102CT1985G01003161 Regd. Office Seepat Road, Bilaspur -495 006 (Cllhattisgarh) Sales & Marlreting Tel: 07752- 246322 Fax: 07752- 246472 Website: www.secl.gov.in TO. MISKSK Mahanadi Power Co. Limited, Narihyara. Janjgir-Champa Chhattisgarh Sub: Liftina of coal bv Road Mode. Dear Sir, In continuation to our discussions on the above referred subject matter, we would like to inform that due to the acute paucity of railway wagons the planned despatch through rail mode is not being materialized. It is therefore necessitated to deliver coal to the units located in the vicinity of mines by road mode for faster evacuation of coal stocks and usage of additional railway wagons thus generated, for long distance coal transportations. As per the logistical analysis, it is evident that your unit is located equally at about 30-40 Kms from the mines of Gevra, Kusmunda and Manikpur OC. You are therefore advised to revert to the lifting of your requirement of coal by road mode and place orders accordingly so that the necessary arrangement for its delively can be initiated. Yours faithfully, &\=\+ - General Manage (S&M) KSK Mahanadh P~werCompany Limited CIN No : U40300TG2009PLC064062 Works Registered Office Near Nariyara Village, 8-2-2931821N431/A. Road No. 22. Jubilee Hills. Power from knowledge Akaltara Tehsil, Janjgir - Charnpa District, Hyderabad - 500033 Chhattisgarh Tel: +91-40-23559922-25 Tel (Site): 07817-284001 Fax: +91-40-23559930 Ref: SECL, BILAS/VVKR/2500108/304 c>/'~ Date: 25.04.2015 To The General Manager (S & M) South Eastern Coal Fields Limited !-- Seepat Road ~~-t{-[6 Bilaspur. Sub: Request for Lifting of Linkage coal by existing Rail Mode as per FSA. Reference: 1. FSA SL NO N117 executed with SECL on dated 19.04.2014 and Addendum # 5 Dt. 31.03.2015. 2. SECL Letter No SECL/BSP/S&M/OPRN/749 DT 17/18.04.2015 Dear Sir, Kindly refer to your letter cited 2 above. In this regard, we would like to inform you that we wish to continue to lift our monthly allocated coal quantities by existing rail mode system only, under above referred FSA. In this regard we write to bring to your kind attention following grounds which are relevant in this matter : 1. We have done huge investments for development of a giant railway infrastructure at our plant. The total track length of our railway infrastructure is around 48 Kms, out of which there are 04 tracks inside the plant for the reception of coal rakes and also it houses two wagon tipplers and two track hoppers as well, enabling us to handle coal rakes considering our unit size of 6x600 MW. With this decision of SECL, all our efforts and investments for setting up such massive infrastructure will go for a toss and will be a huge setback for us. In addition, our state of the art infrastructure and unloading facility further facilitates SECL for faster turnaround of rakes and thus directly helps your cause of increasing materialisation/despatches from mines. Our Plant is situated at about 90 kms from the mines of Dipka, Gevra and Manikpur (Korba Area) and 140 kms from Chal and Baroud (Raigarh Area). We have FSA with SECL (KorbaIRaigarh) for two units i.e. 1200 MW .The monthly FSA allotted quantity presently is 3 lakhs tonnes per month for 2 units or 10000 MT /Day ie. around 500-600 trucks /day. The daily coal consumption for 2 units is about 17000 MT . Linkage coal therefore, is about 60% of our daily coal requirement. It is evident from these facts that , as anticipated by you in your letter, our plant is at a larger distance than 30 -40 km envisaged and hence road mode deliveries are not advisable from Logistics point of views of movement of so many vehicles (outside plant and inside plant) and unloading infrastructure in our plant. KSK Mahanadi Power Company Limited CIN No : U40300TG2009PLC064062 F.; Works Registered Office Near Nariyara Village, 8-2-293/821A/431/A, -<')KS K Road No. 22, Jubilee Hills, Power from knowledge Akaltara Tehsil, Janjgir - Charnpa District, Hyderabad - 500033 Chhattisgarh Tel: +31-40-23559922-25 Tel (Site): 07817-284001 Fax: +91-40-23559930 3. As per plant design, we are not equipped to handle road movement for such bulk quantities and it is a herculean task to sustain uninterrupted generation. Handling around 600+ trucks at the plant is impossible and not feasible for a unit size like ours. 4. Our plant is not designed to handle coal supply by road, due to technical restrictions and plant design. Coal from the rake is directly unloaded at hopper, crushed to (-30MM) size and fed to the boiler (through mills) directly for consumption or stacked at Unloading Yard. Unlike this, in case of Road mode, coal shall be unloaded at stacking yard and it cannot be crushed to (-30MM) size and fed to the boiler. Plant is not equipped with separate crusher or feeding unit for road mode. Further, we need to re-handle coal in plant to feed into Hoppers for which new road infrastructure shall be needed in plant. This new arrangement of road movement from coal yard to Hopper, by technical standards, for 600 trucks movement within plant shall be UNSAFE practise, prone to accidents in plant. Due to the technical design Constraints, it is impossible to handle. linkage raw coal by trucks. Any such modifications in the plant layout are not at all feasible or possible for us at this juncture not advisable from Safety point of view. 5. It is pertinent to note that our rail distance from SECL siding is 98 KMs and coal requirements are primarily being catered through BOBRN. We are maintaining the minimum rake unloading timing at our end, restricting the same at around 45 minutes (one of the Best among other customers of SECLISECR). Apart from this, BOBRN wagons which are only kept by the railways for consumers with Bottom Hopper facilities will remain unutilised and resulting into non-performance of government assets. Due to shorter distance, the turnaround time and availability of rakes increases by serving customers nearby by rail, rather than serving those at far off distances, where it will take more time to receive the rakes back. BOBRN helps to maximise'loading and reducing the rolling stock at SECL Mines and they are preferred for such short distance movement only. This is a win - win situation for Railways, SECL and Customer like us. Therefore, this condition proposed is discriminatory in nature and should not be prescribed by SECL, being a public authority only for power plants situated near the coal mines of SECL. Any decision proposed to be implemented by SECL must be equal on all grounds for all the coal consumers of SECL. 6. As regards paucity of wagons referred in your letter, we had also taken up the matter with DRM/CFTM/SECR who has advised us that there is no wagon shortage, especially for BOBRN wagons, utilised for short- lead & closed - circuit traffic on SECR. The Railway management have also conveyed the State Govt's concern over the need to avoid large- scale road -transportation of coal, in public interest, through adaptation of the cost-efficient & environment-friendly rail option. Moreover, close circuit BOBRN wagons are available with SECR to clear the entire stock of KMCPL (as confirmed by the DRM (SECR) to CMD SECL Bilaspur vide their letter no. P/KMPCL/15, dated 24-04-2015, Letter Attached for reference). 7. Present road infrastructure and route from mines to our plant is not apt for movement. Such a huge bulk coal movement by trucks will raise issues from Environment, safety, District Administration and resistance from the local residents in the vicinity. We have experienced these issues in past, before commencement of operations of our railway siding, when even for very limited coal road movement, we had to stop supplies on those grounds. For a fully KSK R4ahanadi Power Company Limited CIN No. U40300TG2009PLC064062 @'\ Works Registered Office ',$ Near Nariyara Village, 8-2-293/82/N431 /A, KSK Akaltara Tehsil, Road No. 22. Jubilee Hills. Power rrorn knowledge Janjgir - Champa District. Hyderabad - 500033 Chhattisgarh Tel: +91-40-23559922-25 Tel (Site):0781 7-284001 Fax: +91-40-23559930 running plant like ours, this is not feasible as any stoppage of coal supplies may result in loss of generation and huge penalties to us due to shortfall in power supplies. 8. Continuous movement of coal shall hamper due to No-Entry points at Korba, Hardibazar, Baloda and Akaltara the route which we have to utilise for linkage coal movement from 08:OO am to 08:OO pm, currently imposed by the local administration in order to ensure the safety of the enroute villagers/residents. With these restrictions it shall take asking rate to 1200 truckslday (as movement to be enabled only in 12 hours) which is technically impossible to handle in our plant as well as exiting State Road networks. 9. The movement of coal by road in place of rail will lead us to a huge revenue loss of approx. 123 CrIAnnum, which can not be passed on to our power consumers under the concluded PPAs, thereby compromising the commercial viability of our power project. Therefore considering the plant Infrastructure facilities, Safety, rake availability, Less rail distance, reduced rolling stock , SECR Consent, hassle free movement, better evacuation of SECL coal due to close circuit wagons use and power tariff to utilities, linkage movement by rail is best suited for KMPCL Plant. Considering all these aspects, we request your goodself to kindly continue our movement of coal from SECL mines by Rail Mode as per the FSA.
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