Coal India Ltd (CIL) on Tuesday said the coal quality watchdog Coal Controller Organisation has downgraded 40.76 per cent of 871 sidings at 386 mines in 2017-18.
During 2017-18, the Coal Controller announced new methodology for declaration of grade as per directives from the government. Under revised methodology, sampling and analysis of different seams or loading points was carried out through academic institutions and based on their results, the Organisation finalised the grade.
"In respect of CIL (Coal India Ltd), these institutions drew samples in respect of 871 size fractions/sidings of 386 mines. Consequently, 51.55 per cent retained their earlier grade, 40.76 per cent size fractions/sidings were downgraded, while 7.69 per cent were upgraded in reference to the grade declaration during 2016-17," the miner said in a regulatory filing.
In most cases, downgrading has been of one to two grades, it said.
Since the miner dispatches most of its coal to power sector, ultimate realisation from sale continues to be derived from analysed grade, done through third party assessment.
"Such system has been in vogue since October 2013. As such on revenue can only be assessed after coal sampling and analysis over a reasonable period of time," it said.
Annual declaration of grade is a routine exercise, being carried out by coal companies as per directives and methodology prescribed by the Coal Controller.
"During 2016-17, 52 mines or seams were regarded. Again, during reassessment another 22 mines were regarded," the filing said.