Amidst an uptick in coal dispatches by 13.6% through Railways to 31.48 million tonnes in October, Coal India faces logistics hurdles despite increased movement. The company's efforts to bolster transportation to various sectors, particularly the power industry, encounter slow progress in resolving logistical bottlenecks.

The data from the coal ministry reveals that while railway-based coal transport escalates, comprising a significant portion of the dispatched coal, movement via roadways and Merry-go-Round (MGR) remains comparatively low at 20.82 million tonnes and 8.37 million tonnes, respectively.

Coal India managed an increase in daily rake operations for supplying coal to multiple sectors, escalating from 237.5 to 258 rakes per day for the power sector and 246 to 278 rakes per day for all sectors, including steel and cement.

Despite these efforts, industry experts like Deepak Kannan, Global Head of Coal Pricing at S&P Global Commodity Insights, highlight the persisting challenge of logistics hindering efficient coal movement. Kannan stressed the necessity of expediting railway projects and advocated planning for inland waterways to streamline coal transportation.

The dispatch data indicates a substantial surge in coal sent to the power sector, reaching 51.06 million tonnes, marking a 12% rise from the previous year. However, dispatches to the cement and steel industries remained modest at 0.36 million tonnes and 0.24 million tonnes, respectively.

Coal India, striving to meet its annual production target of 780 million tonnes for the current fiscal year, has produced 393.97 million tonnes until October across its 295 mines, underscoring the ongoing efforts to ramp up coal production despite logistical challenges in efficient dispatch mechanisms.