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The government’s directive to Coal India Ltd (CIL) to reduce the quantity of e-auctioned coal has led to dissent in allied sectors. An association of truck drivers in Ib Valley in Odisha has gone on strike, closing rail sidings from where the coal sold through e-auctions is transported by road to buyers such as Vedanta group, Aditya Aluminium and Bhushan Steel.
“Vedanta group has an agreement with the Samleshwari mines for supply of 225,000 tonnes of coal a day. This is stuck at the rail sidings, as the truckers are demanding this amount be diverted for transport through road,” said an official at one of the Ib Valley mines. He added the truckers feared losses if the e-auctioned amount was reduced.
While the coal sold through e-auctions is transported through road, that secured through fuel supply agreements is transported by rail (either captive rail lines or through Indian Railways). While fuel supply agreements provide coal to power generation companies, sectors buying coal through e-auctions are metals, cement, etc.
According to estimates, the past two days have resulted in a stockpile of 700,000-800,000 tonnes of coal. For coal mines of Mahanadi Coal Ltd, a CIL subsidiary, the production loss stands at 30,000 tonnes a day.
About 5,000 trucks ply in IB Valley, transporting 700,000 tonnes of coal a month.
