CIL to compensate for inferior quality coal

Following a near two-year fight with power major

“If there is a slippage in the quality of the coal supplied vis–a-vis the quality promised by CIL, the difference in price will be adjusted in the next consignment. This formula has been worked out because

A few weeks ago, CIL agreed to NTPC’s long standing demand of raising bills and taking payments on the basis of quality sampled by the thermal power generator at the loading point. NTPC complained of inferior quality of coal being sent at prices which were not acceptable.

Loading points are mostly railway sidings where the coal is stored temporarily before it is loaded on rakes. Not just NTPC, any power procedure can opt for appointing third-party sampling agents at loading points and bills will be raised on the basis of their results.

“Following, a meeting held a few weeks ago, CIL agreed to allow NTPC conduct sampling exercise at loading points. The result of this sampling will be used to ascertain the quality of the coal on the basis of which bills raised will be adjusted at a later stage,” said a senior NTPC official.

“Coal India has created a panel of 25 third-party sampling agents. The consumers will have to select their sampling agents from this list and appoint them at various loading points. They will independently sample the coal being sent for dispatch and CIL will accept the result of this samplers,” a senior CIL official said.

KOLKATA: Coal India has turned customer friendly. If quality of coal supplied by the monopoly is certified as inferior by a third party, it will compensate the customer in the next consignment’s pricing.Following a near two-year fight with power major NTPC , Coal India has now allowed its consumers to select third party sampling agencies from a list of empanelled companies. These sampling entities will sample the coal at loading points to ascertain the quality of coal and the results will be accepted by Coal India.”If there is a slippage in the quality of the coal supplied vis–a-vis the quality promised by CIL, the difference in price will be adjusted in the next consignment. This formula has been worked out because CIL supplies coal on payment of advances. Hence the adjustment can be made only in the subsequent consignments. It takes several hours to sample and ascertain the quality of the coal hence adjustment at a later date,” a senior CIL official said.A few weeks ago, CIL agreed to NTPC’s long standing demand of raising bills and taking payments on the basis of quality sampled by the thermal power generator at the loading point. NTPC complained of inferior quality of coal being sent at prices which were not acceptable.Loading points are mostly railway sidings where the coal is stored temporarily before it is loaded on rakes. Not just NTPC, any power procedure can opt for appointing third-party sampling agents at loading points and bills will be raised on the basis of their results.”Following, a meeting held a few weeks ago, CIL agreed to allow NTPC conduct sampling exercise at loading points. The result of this sampling will be used to ascertain the quality of the coal on the basis of which bills raised will be adjusted at a later stage,” said a senior NTPC official.”Coal India has created a panel of 25 third-party sampling agents. The consumers will have to select their sampling agents from this list and appoint them at various loading points. They will independently sample the coal being sent for dispatch and CIL will accept the result of this samplers,” a senior CIL official said.