CIL-NTPC wrangle: tripartite meeting with govt officials soon

Coal India and NTPC which have locked horns over quality of fuel suppled and dues of Rs 1,000 crore

A tripartite meeting involving government officials will take place soon for the final settlement of issues between Coal India and NTPC which have locked horns over quality of the fuel suppled and dues of Rs 1,000 crore.

"NTPC had paid around Rs 150 crore out of total accumulated dues of around Rs 1,000 crore for January 1, 2012 to March 31, 2013 period, and we have resumed supply with joint sampling at loading points," Niladri Roy, Eastern Coalfields  GM and Technical Secretary to Chairman, told PTI.

"And, for the final settlement a high level meeting with NTPC in the presence of government officials will be held shortly," he said.

CIL subsidiary Eastern Coalfields (ECL) had stopped supplying coal to NTPC plants from its mines from April 1 after the dues allegedly reached close to Rs 1,000 crore from the country's largest power generation company.

According to ECL, NTPC was paying for Rajmahal coal at Rs 360 a tonne against the notified price of Rs 670 a tonne.

"NTPC's deduction of price was based on their own internal assessment of the quality of coal. In the joint sampling of coal since April 4 the quality parametrise met the prescribed coal quality," Roy said.

Troubles began after coal pricing switched from useful heat value method (UHV) to gross calorific value (GCV) and since then the price was disputed by NTPC blaming coal quality.     

"Why should we keep operations if our cost of production is higher? For example for Rajmahal the cost of production is Rs 550 a tonne while NTPC is paying Rs 360 a tonne when international linked price is Rs 2200 a tonne," Roy claimed.

Most of Rajmahal coal goes to NTPC plants at Farakka in West Bengal and Kahelgaon in Bihar.