Talcher Coalfields produced more than 95 MT of coal during FY22 and is likely to produce about 200 MT in FY 2024-25 and about 300 by FY 2030 from Mahanadi Coalfields Ltd and allocated coal blocks. To ensure efficient coal evacuation, the construction of the rail line started in a phased manner and traverses Odisha's Angul district.
At a time when the shortage of coal has plagued power producers across India, the first stretch of the Mahanadi Coal Railway, a dedicated rail line in the Talcher Coalfields, is expected to be operational in 2022, the Ministry of Coal said in a statement on July 11.
The new dedicated railway line will help ensure faster movement of coal rakes to Paradip and Damra ports in Odisha, the government said.
Last week, news reports said that the Centre is evaluating alternative routes for moving coal produced in eastern India, primarily from the fields of South Eastern Coalfields and Mahanadi Coalfields.
Shipping ministry officials said coastal shipping routes have been proposed to ease the congestion on railway lines and rake shortages during peak demand seasons.
The ministry added that shipping routes are much cheaper compared to the rail network and will improve coal availability in the southern and western regions of the country.
The first phase of the Mahanadi Coal Railway is a 14-km-long Angul-Balram rail corridor that will facilitate the movement of 25 million tonnes (MT) of coal from MCL mines in Talcher Coalfields.
The second phase of MCRL, a 54-km-long Balram-Jarpada-Tentuloi span, is expected to be commissioned by December 2025 and provides connectivity to allocated coal blocks on the southern side and central part of Talcher Coalfields.
The second phase will cater to the evacuation of around 58 MT of coal from CIL and non-CIL coal blocks in Talcher.
Talcher Coalfields of Mahanadi Coalfield is one of the largest with about 52 BT of coal resources, which is 15 percent of total prognosticate coal resources in the country. Of the available resources in Talcher Coalfield, more than 63 percent (33 BT) lies within 300m depth, presenting significant potential for open cast mining.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
