MoU Signed for Coal Quality Analysis

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Capital Market
Last Updated : Jun 29 2016 | 9:47 AM IST
CSIR- Centre Institute of Mining and Fuel Research (CSIR-CIMFR) signed a Memorandum of Understanding with Coal Supplying companies and Power Utilities for quality analysis of coal being supplied to power utilities by coal companies. The MoU was signed in presence of Dr. Harshvardhan, Union Minister of Science & Technology and Earth Sciences and Shri Piyush Goyal, Union Minister of State (IC) for Power, Coal and New & Renewable Energy. The collaboration will enhance energy efficient use of coal by power sector.

While addressing the audience, Dr. Harshvardhan said that Energy has always been a top priority for Prime Minister Shri Narendra Modi and this MoU embarks a historic moment for the energy production chapter of the country. He further said that CSIR - CIMFR has been assigned a very crucial task and I assure you to deliver best possible results in a transparent environment for quality maintenance in coal sector of the country.

Shri Goyal said that it is a very important day, reflecting the team India spirit where three ministries are working together as one to serve the people of India. He added, I am sure that this initiaive will help consumers of India significantly by giving them cheaper more affordable power in the years too come. The Minister further said that we have been talking about a robust mechanism to have an inspection and proper grading of coal for several months now and I am delighted that committee consisting of NTPC, CIL and others have drawn out a complete mechanism of coal quality testing.

Emphasisng the importance of maintaining coal quality, Shri Goyal said, In last two years, by and large we have seen a significant improvement in the quality of coal that is being supplied to the consumers. Infact, NTPC has reported a reduction of nearly 20% in the cost of coal, largely by reducing the imports of coal and equally important- the quality of coal, that is supplied by the coal companies. The Minister also informed that Coal Controller of India has started the process of revisiting the coal grades of each coal mine and 22 mines have been verified till date.

As a part of this MoU, CSIR-CIMFR would make use of its knowledge based support in maintaining the quality of coal at national level for the entire power sector. It is estimated that about 300 million metric tons of coal samples would be analyzed for quality per year. The contract value of the project is around Rs 250 crore per annum at minimum. It is also expected that this project will result in improvement in performance of power plants besides levaraging benefits to the consumer in particular and society as a whole. The endevour would help the nation in sustainable energy supply and security planning for future as it may reduce import of thermal coal.

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First Published: Jun 29 2016 | 9:36 AM IST

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