Western Coalfields Limited (WCL) has increased the production of coal to 57.6 million tonnes in fiscal year 2019-20 and provided it cheaply to government and private thermal power stations in Central, West and South India. The move has helped thermal power producers to reduce the rates of electricity supply to consumers, said WCL on Tuesday.
WCL is a subsidiary of Coal India Limited (CIL). In 2013-14, its coal production dropped to 39 million tonnes. Because of this, some of WCL’s biggest customers like Maharashtra State Power Generation Co Ltd.
(MAHAGENCO), Madhya Pradesh Power Generating Co. Ltd. (MPPGCL), Gujarat State Electricity Corporation Limited (GSECL) and Karnataka Power corporation limited (KPCL) along with some private companies, had to buy coal from CIL’s other subsidiaries, like SECL, MCL and SCCL. But the longer distance led to higher transportation cost being added to production rates.
According to WCL, in the last five years, it has opened 20 mines with a capacity of 45.64 million tonnes. These mines produced 35.8 million tonnes of coal in fiscal 2019-20. As a result, the company’s production increased to 57.6 million tonnes and it was able to meet the coal demands of its customers.