Rlys package for pithead plants to retain cargo

The railways have begun to offer special packages to pithead projects in the power sector in order to prevent an erosion of its market share in coal carriage which constitutes half of its annual cargo load.

Pithead projects are typically situated close to coal mines and thereby help to cut down transportation costs.

According to railway sources, the ministry expects a rapid increase in the number of pithead projects in India, with Orissa and Jharkhand taking the lead.

"These projects can cut into the share of coal carried by us as they are situated within 50 km from the mines," an official said.

Apart from the fact that pithead projects achieve lower transportation costs, some of the units are able to achieve a competitive cost per unit, encouraging states to opt to buy power and cut down on their power generation capacities.

As of now, the railways carry about 280 million tonnes of coal every year. It is estimated that in the next 10 years, pithead projects alone may need about 200 million tonnes.

In order to ensure that such power plants do not switch to road transportation, the railways have started providing specialised packages to them.

"We are ready to lay tracks for these power units so that we can forge long-term agreements with them," the official added.

The railways have also devised a specialised scheme for short routes under which the turnaround time will be considerably reduced. Wagons which are open at the centre will be used, reducing the unloading time and allowing three trips per train per day.