Companies

Initial tests show NTPC paying less to Coal India

Siddhartha P Saikia New Delhi | Updated on March 12, 2018 Published on April 15, 2013

CIMFR roped in as third party to oversee process

The initial joint sampling done by NTPC and Coal India showed that the power producer is paying less for the quality of coal being supplied by the miner.

The joint-sampling at coal loading point done last week showed that the fuel supplied to NTPC has calorific value of 3,600-4,00 Kcal/kg. This qualifies for grading between G11 and G13 categories that costs Rs 650-550 a tonne, official involved with the process told Business Line.

However, NTPC is paying for G17 grade that costs Rs 360 a tonne, the official added. Moreover, when the quality of coal was tested after 24 hours as practiced globally, the calorific value increased by another 300-400 Kcal/kg.

“We are trying to ensure that whatever billing is made based on quality should be established. It should be mutually agreed between both the companies,” said a Senior Coal India official.

Business Line is awaiting comments from NTPC on the issue.

The sampling would continue for a month and an average would be taken out by April-end. In addition, Central Institute of Mining and Fuel Research (CIMFR) would be roped in an independent party to certify authenticity of the sampling mechanism.

The dispute over quality of coal led NTPC stop payments of nearly Rs 1,000 crore to Eastern Coalfields Ltd. The issue has come up at two sites -- Farakka and Kahalgaon.

On April 10, Coal Secretary Sanjay Kumar Srivastava met the chiefs of NTPC and Coal India. It was decided that a joint sampling would be conducting at loading point and price of coal would be decided accordingly.

>siddhartha.s@thehindu.co.in

Published on April 15, 2013
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