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Web Exclusive | April 2013

Power ministry may take coal quality issue to CCI

The issue raised by NTPC on the quality of coal supplied by Coal India (CIL) may be discussed with the Cabinet Committee on Investment (CCI).

Reports indicate that the union power ministry would take the matter to the CCI after it receives reply from all the ministries, including coal ministry, on a draft note.

The draft note was circulated by the power ministry to invite comments from other ministries on the matter.

State-run power generator NTPC alleges that the quality of coal supplied by CIL is poor and could even cause damage to its machinery. Therefore, NTPC has not signed the fuel supply agreement (FSA) with CIL.

While the power plants of NTPC requires coal of minimum 3,100 kilocalories, the fuel supplied by CIL reportedly has an average heat generating capacity of about 2,100 kilocalories, according to company officials.

CIL recently cancelled supplies at a few NTPC stations as the power producer has reportedly not honoured the bills of the former.

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