The coal ministry has opposed the proposal of Central Electricity Authority (CEA) to form a panel to look into issues with regard to the quality of coal being supplied to power utilities, saying that it would apparently be at variance with the already laid down system and procedures under Fuel Supply Agreement (FSA).
Coal Additional Secretary, A K Dubey said, the coal is being supplied under a legally enforceable FSA and any dispute on coal supply under it has to be resolved through a resolution mechanism provided in the agreement itself. Further, the FSA mechanism provides for joint sampling and analysis at the loading end with a mechanism for resolution of disputes on coal quality issues.
By adding further, Dubey said that Coal India (CIL) has major issues such as payment default and huge outstanding payment with thermal power plants and till now over Rs 8,600 crore has been unilaterally held up by power companies in violation of the provisions of the FSA.
Regarding the coal quality improvement, the coal secretary said, decision has been taken to conduct third-party sampling of coal supplies and CIL has already given a deadline of September 30 to implement it. Moreover, the Central Institute of Mining and Fuel Research (CIMFR) is also doing an independent sample analysis on coal quality.
