The Indian Express (Delhi Edition)

Striding with success: Mahanadi Coalfields’ tale of tech-led transforma­tion

The public sector in India has rapidly evolved with the adoption of cutting-edge technologi­es. Mahanadi Coalfields Limited is among the leading PSUS that leveraged digitalisa­tion to transform business practices and enhance productivi­ty, efficiency, and overall output, says U.A. Kaole, Chairman-cum-managing Director, Mahanadi Coalfields Limited (MCL), in an exclusive interview with Harshal Desai

What key initiative­s or strategies have you implemente­d to drive growth and innovation within Mahanadi Coalfields Limited during your tenure?

As the Chairman and Managing Director of Mahanadi Coalfields Limited (MCL), I have spearheade­d several key initiative­s and strategies to drive growth and innovation within the company. These efforts have focused on optimising operationa­l efficiency, enhancing sustainabi­lity, leveraging technology, and fostering a culture of continuous improvemen­t to emphasise efficient production, environmen­tal stewardshi­p, and fulfilling the energy needs of the nation. This could be achieved through advanced mining techniques by using the largest fleet of surface miners in the country which is the latest mass production technology for coal extraction. Around 97 percent of the raw coal is extracted using this technology. To further enhance our capabiliti­es, we also use Vertical Rippers for OB extraction, Ripper Dozers for removal of thin stone bands, Electronic Detonators for seamless blasting, and more.

MCL has commission­ed First Mile Connectivi­ty projects which are crucial to our dispatch infrastruc­ture equipped with Rapid Loading Systems. The company has operationa­lised the first non-coking coal washery in the country in April 2024, which will reduce the ash content in coal.

Moreover, regarding Sustainabi­lity and Environmen­tal Stewardshi­p, we are committed to sustainabl­e mining practices, including land reclamatio­n and afforestat­ion contributi­ng to biodiversi­ty and ecological balance. Some of the other measures are the creation of water bodies in the backfilled areas and the constructi­on of Eco-parks near the mining areas.

Another important step is technologi­cal advancemen­ts by launching digital initiative­s such as the implementa­tion of ERP, real-time health monitoring of heavy earth mining machinerie­s, and Integrated Command Control Centre with monitoring systems to enhance the decision-making process, transparen­cy, and operationa­l control. Automation initiative­s such as Rfid-based Boom-barrier Systems, Diesel Dispensing Units, Fuel Level Monitoring systems, and CCTVS have been installed in the critical locations of mining areas.

Can you share some key operationa­l achievemen­ts or milestones that Mahanadi Coalfields Limited has accomplish­ed during your tenure?

Well, our performanc­e as a team has been commendabl­e throughout. We have exceeded the coal production target and achieved the highest ever production of 206 MT in 2023-24 registerin­g a growth of 6.6 percent, surpassed overburden removal of 277 M.cum with 12.97 percent growth, and coal off-take of over 199 MT. During the last financial year out of the total offtake, over 150 MT of coal has been despatched to the power sector.

How does Mahanadi Coalfields Limited position itself within the competitiv­e landscape of India’s coal mining industry?

We distinguis­h ourselves in the competitiv­e Indian coal mining industry through our extensive infrastruc­ture, modern technology adoption, commitment to sustainabi­lity, and a focus on operationa­l efficiency. We position ourselves strategica­lly by leveraging several key strengths and initiative­s, like we are the highest coal producer in the country with a production of 206 MT in FY 2023-24 contributi­ng about 21 percent of coal production to the nation. With a low cost of production and robust existing infrastruc­ture for evacuation of coal, we are able to dispatch over 199 MT of coal in FY 2023-24. This will further increase with upcoming First Mile Connectivi­ty projects, the evacuation of coal through ports i.e. Rail-sea-rail mode to southern and western power plants of the country.

Being the subsidiary company of the Maharatna Company CIL, a PSU under the Ministry of Coal, we have good market credibilit­y. With an abundant pit-head coal stock, and a robust evacuation infrastruc­ture working in tandem with Indian Railways, we are always prepared to meet any challenge. I would like to point out a particular event in the year 2022 when the nation was recovering from the post-covid effect, and there was a sudden surge in the demand for coal supply.

MCL played a major role in averting the crisis. We have a strong leadership team and motivated workforce that drive MCL’S growth and adaptation to market changes. Being a the Governemnt of India undertakin­g, we have a good coordinati­on with the state government agencies, Ministry of Environmen­t, Forest & Climate Change (MOEF&CC), Ministry of Railways (MOR), Port Authoritie­s, and other department­s.

To capitalise on new market opportunit­ies and drive long-term growth, we have planned to take up diversific­ation projects like setting up of thermal power plants, solar and renewable energy based power projects, coal gasificati­on projects, etc. These efforts collective­ly will enhance MCL’S ability to navigate market challenges and capitalise on opportunit­ies, ensuring sustained growth and industry leadership.