It was shocking to note that the cost of excavation of a tonne of coal from an underground mine is Rs.3,987 with labour wages alone coming to Rs.2,955 (“As coal stocks pile up, Singareni may slip into the red”, July 1). Besides this, we have the cost of transportation and taxes. Indigenous or domestic coal has an ash content ranging between 40 and 50 per cent which affects the calorific value, i.e. burning efficiency. This results in a huge quantity of coal ash.
Compared to this, Indonesian coal costs about Rs.3,000 a tonne which includes freight, customs duties, port charges and green energy cess when shipped to Tuticorin port. Freight charges vary at other Indian ports. This imported coal also has a higher calorific value and less ash content, a reason why coastal-based industries including thermal power plants prefer imported coal. The government needs to reduce the cost of domestic coal by adopting modern technologies which include mechanisation.
R. Balakrishnan,
Chennai
