Public sector giant Coal India Ltd (CIL) and other coal manufacturing companies will greatly benefit from the rail budget as they require to transport coal over short distance from pits to washeries.
Around two million tonnes of coal was moved in the last fiscal from mines to washeries through railways at CIL every year.
With 50 per cent freight concession allowed for traffic booked upto 50 km followed by 25 per cent concession from 51 km to 75 km and 10 per cent concession from 76 km to 90 km, Coal India and its subsidiary and sister companies will be reduce its cost of production.
Coal consumers however were not so happy with the budget. The power sector, the largest consumer of coal, will not benefit much from the short distance tariff reduction because major power generating stations were located at distances greater than 50 km except for few like the Talcher unit of NTPC and Bakreswar unit of WBPDCL.
