In a first, state-owned miner Coal India Limited (CIL) has decided to buy 40 rakes for Rs 700 crore to enhance its evacuation capability by 56 million tonne (mt). This will not only give the company direct control to move coal to desired power plants, but also also help free up pithead stocks.
Moreover, as the availability of rakes increases, the maharatna public sector unit (PSU) could also enhance its allocation to non-power clients.
According to a company official, one rake comprises 59 wagons and a back-of-the-envelope calculation indicates that one rake can move 1.4 mt of coal per annum. The lifespan of these wagons is expected to be 35 years.
