CCL lost Rs 74 cr by not revising beneficiation charges: CAG

CCL introduced beneficiation charges of Rs 130 per tonne of coal in 2002

Government auditor CAG has pulled up Central Coalfields Ltd (CCL), a unit of Coal India, for not revising the beneficiation charges, resulting in revenue loss of Rs 73.6 crore.

"CCL...Was deprived of earning additional revenue of Rs 73.63 crore during 2008-09 to 2010-11 due to non revision of beneficiation charges from Rs 130 to Rs 165 in 2004 and to Rs 180 per tonne in 2009-10," the Comptroller and Auditor General said in a report tabled in the Parliament today.

The Coal India subsidiary had introduced beneficiation charges of Rs 130 per tonne of coal in 2002 on non-core sector consumers picking big-sized coal from railway siding.

CCL observed that non-core sector consumers who were procuring coal under linkage/sponsorship by Rail indulged in heavy picking of big-sized coal from the railway siding of the subsidiary when rakes were places for supplies.

Local villagers were deployed for such pickings, and paid by the handling agents of consumers. Thus, the coal was being selectively allowed to be lifted leaving behind extraneous material resulting into manual beneficiation.

"Hence an additional charge of Rs 130 (beneficiation charge) per tonne, equal to the difference between the pit-head price of Run Of Mine (ROM) coal and steam coal at that point of time was approved by the CCL Board to be charged from its non-core sector rail sale consumers," CAG said.

Though the difference was enhanced to Rs 180 in 2009-10 by CIL and implemented by another subsidiary, the same was not implemented by CCL, it added.