Coal quality issue between NTPC, CIL may be resolved soon

Power Ministry and NTPC have alleged that the quality of coal supplied by Coal India is low grade

The government is expected to resolve the contentious issue of coal quality supplies between power producer NTPC and Coal India Ltd within a couple of weeks.

According to sources, at a meeting with the officials from the Coal Ministry, CIL and NTPC, Power and Coal Minister Piyush Goyal has said that the government will soon end the coal quality woes affecting the two state-owned companies.

"The minister is finding out a solution to the fuel quality issue which will be acceptable to both the parties (NTPC and Coal India)," said an official who attended the meeting.

He added that some solution can be expected in a couple of weeks.

The Power Ministry and NTPC have alleged that the quality of coal supplied by CIL is low grade and stones and boulders are being dispatched in supplies even after the introduction of the third party sampling mechanism.

Besides, the power producers have raised concerns pertaining to coal companies - Coal India subsidiaries - charging project developers 40 per cent premium over Coal India notified price for supply of coal.

Earlier, it had also alleged that the coal companies were charging a premium of 20 per cent over Coal India notified price for coal supplies to tapering linkage holders.

Besides, the power producers have said that the mechanism for third party sampling of coal quality, which was introduced in October last year at loading points, could not address the quality issue and so there is a "need to be done at unloading point".

The issue of coal quality last year had resulted in a standoff between NTPC and Coal India.

Last year, NTPC had alleged that it was being supplied inferior quality of coal, which was followed by Coal India stopping supplies to NTPC's plants saying the power major owed huge dues to the coal PSU.