The Hindu Business Line : Coal India seeks details on usage of coal from NCCF

"We have serious reasons to believe that a large chunk of the coal lifted by NCCF from Eastern Coalfield Ltd is not reaching the deserving consumers and is actually landing up in the open market."

New Delhi , April 3

TENSION is brewing between Coal India Ltd (CIL) and National Cooperative Consumers' Federation of India Ltd (NCCF) over usage of coal allotted to the federation.

NCCF, which has been given a quota of two million tonnes (mt) per annum by CIL for further distribution to small-scale consumers, has not submitted to the latter the list of consumers to whom material had been sold, CIL officials said. They also expressed apprehensions that a large chunk of the coal lifted by the federation from different CIL mines was not reaching the small consumers.

The officials told Business Line, "We have serious reasons to believe that a large chunk of the coal lifted by NCCF from Eastern Coalfield Ltd (ECL) is not reaching the deserving consumers and is actually landing up in the open market through a section of coal traders with strong underworld connections." Coal in the open market commands a huge premium.

NCCF was allotted such huge quantities following recommendations from the Coal Ministry. The Coal Ministry sources, when contacted, said they had suggested out of turn allotment to the federation following strong recommendations from the Ministry of Consumer Affairs and Public Distribution.

NCCF is a Government-promoted federation under the administrative control of the Ministry of Consumer Affairs and Public Distribution and has recently taken up coal distribution as one of its activities. The federation, which deals with groceries, textiles, tea, general merchandise and confiscated goods, had been trying to enter coal distribution since 2001.

"During February and March this year the organisation lifted 40,000 tonnes from Eastern Coalfields by road and we are yet to know what they have done with that coal. We have already written to them seeking details but in vain," the CIL officials said and added that "as per our information, the federation had been given B-grade coal at Rs 2,182 per tonne and C-grade coal at Rs 1,475 per tonne and they have sold it to users at a substantial premium."

NCCF officials, when contacted, said that since coal is a new business the federation is in the process of putting the systems in order.

"We have informed the branches that only a five per cent service charge over the control price would be charged and not more than that. Guidelines have already been sent to the branches and hopefully we would be giving the list of our buyers to the coal companies next week," the NCCF officials said.

He said that a meeting of all the branch managers of NCCF has been convened in the third week of April to take stock of the situation and added that the federation is currently exploring new areas of business such as iron ore exports to China and gold imports into India.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page