My Black Diamond: Going by Demand Generation

The story of 24X7

There has been some development on the coal block allocation. To optimize the coal production towards a 24X7 electricity output, we need to delve deep into some of the operational efficiencies.
Here is some food for thought for the same:

  1. Can we tell if identifying coal blocks by demand and supply would be a good idea? Then, dividing into zones and blocks would sound to be an optimistic work. The coal zones and within them blocks would be necessary to store excess coal at one or two places as a high inventory to supply other blocks and zones in necessity.
  2. Optimizing inventory would be a part of the next step that caters to 24X7 supply of the electricity. The Coal Allocation Demand Block receives Coal at one point for storage in the existing demand station, which is then circulated in necessity.
  3. There can be a cut-off of inventory levels that would require more coal to arrive and store at a zone for optimal usage.
  4. Over-Capacity ratio or the level which when attained for a block or zone would stall the incoming inventory. Such a ratio might be optimally used to deter further digging. This calls for a trigger, and an effective coal management.
  5. The reduction of costs in coal transportation may be looked upon. Also, a direct link of the inventory to digging in the Coal Generation Block, can help in balanced usage of natural resources.
  6. A method of fast track transportation can be used to process the coal block demand quickly. Maybe special trains within zones or blocks can be introduced.
  7. An intra-zone allocation would definitely lessen the transportation costs than inter-zone. Blocks within the same zone would definitely lower the cost.
  8. Pricing can be within blocks, and within zones at a standard or floating price depending on the coal demand generation. How the Government subsidy can come into picture, can be discussed.
  9. To generate optimal use of coal, there should be a backward integration from the coal used to generate electricity to the amount of coal used for excavation. This can only be taken care by the Government.
  10. Last but not the least, we need to think on both the pros and cons on the private use of coal or state affected machinery to take care of coal blocks. I would suggest not to privatize in the near future.

Hoping for a 24X7 one day! Amen !!!

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