Thu, 23 May 2013 15:30:00 GMT | By PTI

Coal Ministry opposes move to set up panel to resolve quality issue

The proposal to form the committee comes in the wake of differences between Coal India (CIL) and NTPC over the quality of coal being supplied to the power PSU


Coal Ministry opposes move to set up panel to resolve quality issue (© Reuters)

New Delhi: Amid the CEA proposing to form a panel to look into issues with regard to the quality of coal being supplied to power utilities, the Coal Ministry has opposed it saying it is at variance with the already laid down system under the fuel supply pact.

“The proposal of the CEA (Central Electricity Authority) for constituting a committee to assess the sampling and testing facilities would apparently be at variance with the already laid down system and procedures under FSA (Fuel Supply Agreement),” Coal Additional Secretary A. K. Dubey said in a letter to CEA Chairperson A. S. Bakshi.

The proposal to form the committee comes in the wake of differences between Coal India (CIL) and NTPC over the quality of coal being supplied to the power PSU.

Dubey further said the coal is being supplied under a legally enforceable FSA and any dispute on coal supply under the fuel supply pact has to be resolved through a resolution mechanism provided in the agreement itself.

“Supply of coal under the FSA mechanism provides for joint sampling and analysis at the loading end with a mechanism for resolution of disputes on quality issues, if any, through analysis of referee samples. CIL said NTPC has stopped participating in the joint sampling process since January 2013,” the letter said.

(Continued)
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