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Web Exclusive | April 2013

NTPC locks horns with CIL

Power major NTPC has locked horns with its fellow state-run company Coal India (CIL) over what is claims as the poor calorific value of coal being supplied by the latter.

Calorific value refers to the amount of heat that can be generated by burning a certain amount of fuel. Typically, the calorific value falls when the fuel is of poor quality or has impurities (which means more of it will need to be burned to generate heat, and, consequently, electricity).

According to media reports, NTPC asked some state governments to join its battle against CIL for improving the quality of coal. NTPC wants the state governments to join it in the battle because state electricity boards buy power from NTPC.

NTPC claims that while it is being charged for coal with a calorific value of 5,000 kcal per kg it is getting that with a calorific value of 3,500 kcal per kg. It has held back payment of Rs 2,000 crore to CIL on this account and denies owing any money to the miner.

CIL rejected the allegations of NTPC and even refused to accede to the power generator’s request for quality checks at the point of delivery.

Such checks are currently performed at the point of loading and involve the participation of a team from NTPC.

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