Coal Pilferage ROI — How Much Are You Losing Per Month?

Most coal plant logistics heads know pilferage is happening. Few have calculated the actual monthly cost with precision — because until you have sensor evidence, the losses appear as 'measurement variance' in the weighbridge data.

Here is how to calculate your actual exposure.

The Monthly Pilferage Loss Formula

Monthly Loss = Trucks/month × Avg load (MT) × Pilferage rate % × Coal price (₹/MT)

Conservative scenario (5% pilferage)

300 trucks/month × 25 MT × 5% × ₹3,500/MT = ₹13.1 lakh/month

500 trucks/month × 25 MT × 5% × ₹3,500/MT = ₹21.9 lakh/month

1,000 trucks/month × 25 MT × 5% × ₹3,500/MT = ₹43.8 lakh/month

Moderate scenario (10% pilferage)

300 trucks/month × 25 MT × 10% × ₹3,500/MT = ₹26.3 lakh/month

500 trucks/month × 25 MT × 10% × ₹3,500/MT = ₹43.8 lakh/month

1,000 trucks/month × 25 MT × 10% × ₹3,500/MT = ₹87.5 lakh/month

High-risk scenario (15% pilferage)

500 trucks/month × 25 MT × 15% × ₹4,500/MT = ₹84.4 lakh/month

1,000 trucks/month × 25 MT × 15% × ₹4,500/MT = ₹1.69 crore/month

The Hidden Cost Multiplier: Dispute Irresolvability

The direct material loss is only part of the cost. Without sensor evidence:

Transporter penalty clauses are unenforceable — 0% recovery on disputed trips

Insurance claims for cargo theft cannot be substantiated

Internal audit cannot distinguish pilferage from legitimate variance

Annual 'measurement variance' absorbed into P&L silently

Industry data from deployed plants: 60–80% of weight shortfall disputes are resolved in plant's favour when sensor evidence is available, versus 0% without it.

Platform Cost vs Savings

Intugine's platform costs approximately ₹40 per trip.

Payback period: first month.

What the Sensor Evidence System Catches

A coal pilferage detection system using activity sensing and IoT sensors detects:

Full discharge events — truck tips entire load at non-authorised location

Partial unloading — 1–5 tonnes removed during an otherwise normal-looking halt

Drive-through fraud — truck enters plant geofence but unloading does not occur at the coal yard

Pattern pilferage — same driver/truck combination with repeated suspicious halts that each fall below the alert threshold individually

How Fast Does the System Pay Back?

Typical deployment timeline:

Week 1–2: Hardware fitted, platform live

Week 3–4: First pilferage events detected and documented

Month 2: First transporter penalty enforced with sensor evidence

Month 3: Pilferage rate drops 40–60% as deterrence effect sets in

Month 6: Full corridor calibration, 60–80% pilferage reduction sustained