Reaching the heights in Production – Review of Northern Coal fields (NCL)

Company Performance in last 6 years

Northern Coalfields Limited (NCL) a subsidiary company of Coal India Limited is a major contributor of power grade coal in the northern region of India. It has 10 mines including Amlohri, Bina, Dudhichua, Jayant, Jhingurda, Kakri, Khadia, Nigahi, Krishnashila, and Block-B. Producing coal through mechanised opencast mines, the company majorly produces G- 5, G- 6, G- 7, G- 8, G- 9, G-10, G- 11, G- 12, and G- 14 grades of coal.

The exploration carried out by GSI/NCDC/CMPDI has proved that an abundant resource of power grade coal in the area. This in conjunction with easy water resource from Govind Ballabh Pant Sagar dam makes this region an ideal location for high capacity pithead power plants.

NCL Khadia Area

The coal supplies from NCL has made it possible to produce about 10,515 MW of electricity from pithead power plants of National Thermal Power Corporation (NTPC), Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd (UPRVUNL) and Renupower division of M/s. Hindalco Industries. In addition, NCL is also supplying coal to power plants of Rajasthan Rajya Vidyut Utpadan Nigam Ltd, Delhi Vidyut Board (DVB) and Haryana State Electricity Board.

As per latest news reports, NCL has recently broken its own record of coal production by producing 93.10 million tonnes (mnt) of coal till March 3, 2019, which is the highest ever in a financial year since the inception of the company. The company is now eyeing at achieving the 100 mnt annual targets well within time.

NCL has produced 93.41 mnt of coal in the current financial year till March 4, which is 10% higher than the same period of the last year. The company has dispatched 93.92 mnt of coal so far in the current financial year which is 6% more than the corresponding period of the last fiscal. Likewise, NCL has supplied 78.45 mnt of coal to powerhouses which is in excess of 8% of the volume supplied to powerhouses in the same period of the last fiscal.

Notably, NCL has been entrusted with the responsibility of producing 100 mnt of coal and dispatching 100.50 of coal. The company has already achieved 93% of assigned annual targets of production and dispatch. Going by its spectacular performance all through, the company is likely to achieve the current fiscal targets well within the time.

NCL Mine wise Coal Production data
NCL Mine wise Coal Production data

NCL’s Khadia area Achieved Coal Despatch Target 32 Days Ahead

  • NCL Khadia area achieves coal despatch target 32 days ahead of fiscal completion.
  • The area recorded a historical increase of 30% in coal production and 43% in despatch.

Coal projects of the NCL have begun to accomplish assigned targets long before the completion of fiscal and the said beginning has been marked by Khadia coal area of the company. Khadia Opencast Project achieved its coal dispatch target straight 32 days ahead of fiscal completion by dispatching 10.54 of coal in the financial year 2018-19 against the assigned target of 10.50 mnt. With this, the area has achieved the distinction of being the first project to achieve either of the targets given for production and dispatch for the current financial year.

Northern Coal Fields Limited
Northern Coal Fields Limited

Khadia Area also crossed 10 of coal production in the current fiscal. The area has been assigned the target of 10.25 of coal production in the current financial year and going by the present level of performance, the project is likely to achieve the goal shortly. The area has recorded a historical increase of 30% and 43% in coal production and dispatch respectively in comparison to the corresponding period of last year.

After Khadia areas extraordinary performance, NCL now have high hopes from other coal areas of the company to meet its annual targets and the company is aiming to surpass its coal production target of 100 mnt and dispatch of 100.50 mnt.

Coal Production Details

Below given are an in-depth analysis of company’s coal production for past six year on Mine-wise coal production, Grade-wise coal production, The period during which these details were sought is from Financial Year (FY) 14 (1st April 2013 to 31st March 2014) to FY19 (1st April 2018 to 31st January 2018).

NCL Coal production data
NCL Coal production data
NCL Grade wise coal production data
NCL Grade wise coal production data

It can be summarized that in past six years, NCL coal production is constantly increasing and growing at an average rate of 6-7 % annually. NCL’s Nigahi project, Jayant project and Dudhichua project are the top coal producing projects. Likewise, looking at company’s grade wise production, the company has majorly produced G-7, G-8 and G-10 grade of coal in large quantities.