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Consumers' Page
Submission by both Power and NRS consumers:
1. Submission regarding extension of validity of Road Delivery Orders (RDOs) till 30th June, 2021:
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The sudden upsurge of Covid-19 cases across India in recent weeks is making coal operations through Road mode difficult due to transporters and drivers getting infected in large numbers, pocketed lockdown in different states and lower turn out of vehicles. In spite of the relief provided by CIL through extending the validity of RDOs till April'21, the consumers, whose DOs have been issued in March’21, may not be able to complete lifting the allotted quantity within the extended time period due to the increasing severity of COVID-19 crisis. Request has been made to MoC, CIL and the concerned Subsidiaries so that the facility to lift DOs ending in April & May’21 may be extended upto 30th June for both Power and NRS consumers for FSAs and e-Auction Quantities.
2. Submission regarding temporary change of mode from Road to Rail due to increasing number of COVID cases:
The critical condition caused by resurgence in the number of COVID-19 cases in many parts of India is affecting the availability of transport vehicles, crew/ truck drivers and causing coal transport by Road mode unviable. Request has been made to CIL to extend the temporary arrangement of change of mode for coal transportation from Road to Rail for the willing consumers who have urgent requirement of coal for their MSQ from April'21 till September'21.
3. Submission to SECL for early issuance of long-pending credit notes and coal value reconciliation by Road- mode consumers:
Consumers from both Power and Non-power sectors have pointed out that delay in reconciliation of excess coal value against quantity despatched through Road mode has caused a large amount of their fund to be stuck for long. Certain credit notes are pending in this regard since more than 2 years. In case of up gradation in analysed grade of coal, issuance of supplementary invoices is inordinately delayed for the Power consumers (Road mode) and as
a result they are unable to submit the same to the Discoms. Request has been made to SECL for timely issuance of pending credit notes and supplimentary invoices and ensure reconciliation of coal bills pertaining to despatch through Road mode at the earliest possible.
4. Submission to SECL regarding continuation with single LC against coal supply through Rail and Road mode:
So far, the consumers had to provide a single Letter of Credit (LC) for the entire supply irrespective of the mode of dispatch. However, as per instructions given by SECL, separate LC needs to be issued for separate modes of dispatch (Road or Rail mode). Many consumers have to avail both modes of transport (Road/Rail) for convenience of coal supply at their respective plants. Hence, issuance of separate LC for separate modes would be financially difficult as well as cumbersome for them. Request has been made to SECL to continue with the provision of a single LC for entire supplies irrespective of mode of dispatch (Rail/Road) to the respective companies.
5. Application of the provisions of section 194-O of the Income-tax Act, 1961 in relation to e-Auctions of coal conducted for Power and Non-power consumers:
According to the sale intimation letter, purchasers of e -Auction coal have highlighted that in addition to the bid price and the statutory levies payable for purchase of coal under various e-Auctions, coal consumers are also asked to deposit an additional amount of 0.75% of the material value as TDS within three working days of the said letter. The liability to deduct taxes under the aforesaid section is that of the e-commerce operator and the company from whom taxes should be deducted is the e-commerce participant (seller of coal). Therefore, the said TDS should not be recovered from the coal purchasers. Request has been made to CIL to ensure that the TDS should not be deducted from the consumers but it should be deducted from the coal value submitted to the e-commerce perticipants.
Submission exclusively by Power sector consumers:
6. Submission by Power sector regarding supply of lower grade coal and high short-receipt from ECL sidings:
Certain power Utilities procuring coal from Salanpur and Mugma sidings of ECL has complained regarding supply of significantly lower grade coal as compared to the grade mention in the FSA (5-8 grade lower) during March and April’21. Also, there are numerous instances short-receipt in rakes dispatched from those two ECL sidings. Request has been made to ECL to atleast minimise grade slippage the problem of grade slippage in order to eradicate them and also look into the issue of consistent short-receipt so that proper quantity and quality of coal can be supplied to Power consumers as per the billed grades.
7. Submission to WCL by the Power Sector Consumers for immediately conducting Special Forward e- Auction:
Special Forward e-Auction for Power Sector consumers both in Rail and Road mode consumers were last held on 09.02.2021 for the February’21–April’21 period in spite of an urgent requirement of coal among the Utilities. Request has been made to WCL for urgently conducting Special Forward e-Auction in order to replenish the shortage in coal stock at their respective plant ends.
8. Submission to MCL regarding supply of washed coal through the upcoming washeries:
Considering huge demand of raw coal produced by MCL, mammoth demand for washed coal can be anticipated from consumers across the board. Installation of washeries will benefit the consumers as higher GCV of washed coal would eventually reduce the transportation cost, ash disposal cost and cost of pollution emission. 1. Request has been made by the FSA consumers to
MCL to offer washed coal through MoU route. 2. MCL may also consider selling of washed coal through e-Auction in case surplus coal is available after fulfilling prior commitments or if any quantity remains unsold. 3. A part of the total quantity of washed coal may be earmarked for Non-power sector as well.
9. Submission regarding discontinuation of supply under expired FSAs:
As per CIL’s notification, coal supplied to NRS consumers at notified price as per the MoU signed between them and the Subsidiary coal companies even after expiration of their erstwhile FSAs of pre linkageauction regime is to be discontinued after 31st March 2021. This would stop the supply of coal till the next Tranche is held and the cost of coal under Exclusive auction will significantly increase as the auction floor price is 10-20% higher than the notified price. Also, there is uncertainty over the commencement of 5th Tranche of auction. Request has been made to MoC and CIL to continue with the supply of coal at notified price as per MoU signed between these consumers till the next Tranche of auction is held. Also, the reserve price of coal is requested to be kept the same as notified price in the coming auctions.
10. Request for not imposing penalty for short-lifting from Wani Siding for NRS FSA consumers:
A number of NRS consumers procuring coal from WCL are not able to lift allotted quantity from the Subsidiary’s Wani sidings as a) The offered G13 grade of coal is not suitable for direct feed to the boilers and needs to be blended with high grade imported coal making it unviable for the plant. b) In order to lift 75% of ACQ from Wani siding as per the FSA clause, the consumers need to lift a huge number of rakes within less than 2 months which may not be feasible due to shortage in storage capacity. c) The coal price structure of Neeljay OCM, the newly introduced feeding source of Wani siding, is yet to be sent to the consumers. Request has been to WCL for not penalizing the consumers for short-lifting as contracted grade of was coal was not available from Wani sidings during most of the FY2020-21.
Submission to Railways:
11. Submission to Railways for not including ancillary charges for direct debit through e-payments:
As per the Notification by Railway Board and East Coast Railways, the consumers would have to sign a supplementary tripartite agreement for Inclusion of Wagon Registration Fee (WRF) and other ancillary charges such as Siding Charge, Shunting Charge, Demurrage Charge, Wharfage Charge, Re-booking Charge, Diversion Fee, Freight Under Charges to debit directly through E-Payment facility.
Concerns:
1. In the changed system of payment, the ancillary charges will be automatically debited from the freight account of the consumers on the basis of bills raised by Railways without preinitiation and consumers’ authorisation. 2. Earlier ancillary charges were paid after reconciliation of bills because in some cases the bills are raised erroneously, however, in the present system of payment there will be no such provision and in case of any wrong / over-billing. 3. Responsibility of coal loading in rakes lies with the Subsidiaries, in which consumers do not have any control. Apart from Sardega siding of MCL, demurrage charges have not been levied upon the consumers anywhere else so far.
Submission:
Request has been made to the Ministry of Railways, Railway Board as well as East Coast Railways to continue with the current practice of accepting these charges through DDs/cheques/RTGS and not to debit the ancillary charges directly from consumers’ accounts before the final reconciliation.
