Financial Daily from THE HINDU group of publications
Friday, Jun 25, 2004
Financial Daily from THE HINDU group of publications Friday, Jun 25, 2004 |
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Industry & Economy
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Coal NCL's coal price hike piques NTPC Badal Sanyal
Kolkata , June 24 A PIQUANT situation has developed over the implementation of revised coal prices by Northern Coalfields Ltd, a profit making subsidiary of Coal India Ltd, with National Thermal Power Corporation refusing to accept unilateral price increases. NCL has revised prices twice in the last one year - this month and in October 2003. NTPC argues that any price revision has to be negotiated since the corporation consumes about 80 per cent of NCL's total production. The power utility contends that the way CIL and NCL revise prices goes against the sanctity of the coal supply agreement it has with NCL. In fact, NTPC is not paying, on protest, the new prices effected in October last year and this June. It is still paying the pre-October prices. On its part, NCL has put on record that its sales dues from NTPC have reached the level of about Rs 180 crore till date. When contacted, the NCL Chairman & Managing Director, Mr V.K. Singh, said that NTPC was not honouring the new prices on the argument that the corporation was ignored on the price revision issue. Mr Singh refrained from making any comment on NTPC's stand, but he said the matter would be placed before the company's board. He expected an amicable solution on the issue shortly so that NCL can get additional revenue from its sales. Mr Singh said that his company produced about 47 million tonnes of non-coking coal in the year 2003-04 and dispatched almost an equal quantity. About 80 per cent of its total dispatch went to NTPC's plants located adjacent to the company's mines. Barring about 4 mt of coal that went to Hindalco's captive power plant Renusagar, the remaining quantity was consumed by local power stations owned and managed by the state electricity boards of Uttar Pradesh and Madhya Pradesh.
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