Power utilities in Orissa are sore over the low quality of supply of coal by Coal India subsidiary Mahanadi Coalfields Ltd (MCL) resulting in fall in generation.

Also Read   News Now Paper Specials - Hat-trick of gains - Dhanalakshmi Bank forays into merchant banking - India Eco Summit: Ashok Leyland sees double-digit sales growth - India Eco summit: Pvt cos should raise farm sector investments - PFC to lend Rs 50,000 cr to power projects More     Also Read   News Now Paper Specials - Great Indian telecom boom begins to ring hollow - Vendors to share BSNL&£39;s 3G ad spend - DTH sparks new row between producers and multiplexes - T Rowe Price pays Rs 700 cr for 26% in UTI - Rosy Blue rules the world of glitter More   Also Read   News Now Paper Specials   - Q3 FY09 Results: Earnings Season - Saving Satyam: Govt gets into action - India-Pakistan Tensions: Fallout of Mumbai Terror Attack - Your Money: Where to invest - Market Crash: Global worries weigh - Time Out: Books, fashion, food, travel, sports, health...  More

It is estimated that over the past few months, generation at NTPC Kaniha and OPGC plants have come down by about 10 -15 per cent due to supply of low quality coal. Orissa power utilities allege that MCL supplies them with G grade coal, while the E and F grades are sent to southern India power stations.

This is mostly because of southern stations making advance payments on coal supply to MCL. The issue is likely to be discussed threadbare at the ensuing Eastern Region Power Committee ( ERPC) meeting in Kolkata on November 12 2008.

Led by the main power trading and transmission agency of Orissa, Gridco, NTPC Kaniha and OPGC officials are complaining about the coal quality. A highly placed official in Orissa state energy department said, “we received complaints that MCL is supplying the inner level better quality coal to Tamil Nadu Electricity Board (TNEB) and Vizianagaram power stations.”

Orissa plans to register a protest with Coal India and coal ministry against such discrimination. According to T K Bhattacharya, general manager ( sales ) MCL, “ this is a wild allegation. There is no discrimination and we supply the best grades of coal to Orissa power plants. This is deliberate pressurisation”.

MCL has 10 million tonne pit head stocks of high-grade coal and is ready to open its coffers to serve the Orissa plants. Said Bhattacharya, “they have failed on commitments of import and are now pressurising us”.

The issue over the low quality of coal supply cropped up during the monsoon months (July-September), when MCL started supplying wet coal to keep commitments. Says a MCL spokesperson, “ the matter was sorted out at that point by opening stock yards for the power producers. It is surprising that the issue is again being cooked up”.

Read Business news in  Advertisements   Your dream home can now be a reality.   Visit Fortis for a preventive health check-up & get a 20% discount.   Follow the ups and downs of your investments. Try our new Portfolio Tracker   Kolkata Dock \ Freight contract for the British Gurkhas Nepal   Find how Midsize Businesses use ERP to gain competitive advantage   Trading in Forex is now as easy as 1-2-3   Discover an economical and cost effective way to market your products and services   Giftwithlove.com: Same day delivery of Flowers and Cakes to India   Download the E-book on the Future of Business Intelligence   Learn Best Practices for improving customer satisfaction   Know your customers better... download the free e-book on CRM