Power generating companies have asked state-run Coal India to increase the supply of the dry fuel from Korba area in Chhattisgarh through rail wagons to help them reduce transportation cost as well as tariffs for end-consumers.
Korba region serves 20 per cent of the domestic coal supply but Coal India-arm South Eastern Coalfields Ltd (SECL) is able to meet only 55 per cent of its demand from the region through rail, according to Association of Power Producers (APP).
The APP in a letter to Coal India chief Anil Kumar Jha mentioned that power producers are incurring around 25 per cent higher costs to move coal by road as against rail mode.
