Consumers' Page

Present Coal Scenario:

Total coal production achieved by CIL was 58.30 million tonnes in December 2020 a growth of 0.5% compared to 58 million tonnes lifted in December 2019. For the period of April 2020- December 2020, the national miner has produced 392.80 million tonnes, registering a growth of 1.1% over 388.40million tonnes produced in the same period last year. CIL’s Total offtake for December stood at 52.60 million tonnes. The offtake has been reduced by 2.1% compared to December 2019’s figure of 53.70 MT. Total offtake for the period of April 2020 to December 2020 has been 409.70 MT.

Submissions made by both Power and NRS consumers:

1. Request for amendment in over loading & under loading clause of FSA and e-Auctions:

The responsibility of coal loading in rakes is with the Subsidiaries Coal Companies and the consumers do not have any control over quantity of coal being loaded in the rakes. However, various additional charges are levied on consumers from both Power and Non-power sector by the Indian Railways due to over loading of rakes i.e. punitive charges for load adjustment/detention, engine haulage charges etc.

In case of under-loading, the full amount is not refunded, because according to FSA provision,

coal companies give under loading charges limited to the difference of CC / stencil capacity and actual weight of coal loaded in the wagon. But the Railway charges freight as per permissible carrying capacity (PCC ) / chargeable weight and in most cases PCC / chargeable weight is more than the stencil carrying capacity.

Request has been made to CIL for amendment of the above-mentioned clause so that the sellers bear the penalty on overloading charges and consumers pay only the cost of excess coal quantity over the chargeable weight supplied by the Subsidiaries.

2. Submission regarding issue of ungraded coal supplied to Power and NRS consumers:

*Power sector have stated that in spite of the provision in their FSAs, refunds for supply of ungraded coal are still pending from different Subsidiaries even after two years or more in some cases.

Request has been made to CIL by the Power sector so that the pending refunds on account of ungraded coal may be processed at the earliest. In case of Formulation of a new policy in this regard, it may be expedited as the fund is stuck for a long time.

*The NRS consumers are unable to get long pending refunds through credit notes even when the quality of coal supplied is lower than the G-17 grade because unlike the Power sector there is no provision for issuing credit notes in case of supply of ungraded coal in the FSAs for NRS consumers.

Request has been made to CIL to expedite the formulation of a suitable policy in line with the Power sector so that the NRS consumers can get their requisite refund in case of supply of ungraded coal.

3. Submission to ECL for immediate refund of long-pending quality claims for supply of lower grade coal:

As per 3rd party analysis results by QCI, there had been a consistent grade variation to the tune of 3-5 grades in the coal supplied by ECL to certain consumers from both Power and Non-power sector between September'18- December’18 This has lead to quality claims worth crores of rupees which is pending with ECL for more than 2 years.

Request has been made to ECL for immediate refund of the long-pending quality claims to the affected consumers.

4. Submission to CCL regarding nonimposition of Forest Transit Fees on consumers:

The Central Coalfields Limited vide notice no.CCL/HQ/M&S/STC/20-21/4283 dated 09.11.2020, the consumers procuring coal from mines operating completely or partially in designated forest lands, are being charged Rs. 57/-PMT as Forest Transit Fee.

As the consumers are already paying a number of additional charges such as COVID Cess, increased STC charges as well as increased base price of coal etc. Submission has been made to CIL and CCL for not levying Forest Transit Fees on consumers.

Submissions made by Power Sector Consumers:

5. Submission regarding constant short-receipt of coal from MCL’s Talcher sidings:

Certain power sector consumers procuring coal from MCL’s Talcher sidings are constantly fac-

ing the issue of short-receipt of coal in the rakes weighed at Spur Weighbridges since the last few months. The short receipt faced by one of the Power consumers amounts to 1.5% to 5.50% in both BOXN and BOBRN rakes in December’20.

Request has been made to MCL for recalibration of all spur weighbridges at the earliest. Also, weighment of rakes may be arranged at any operational weighbridges en-route till the Spur Weighbridges are calibrated.

6. Submission by Power sector to regarding BCCL pricing of Washery grade - IV, V, VI coal:

The price of Washery grade IV, V & VI was reduced by BCCL during the pandemic induced lockdown period in 2020. However, BCCL’s decision to revise the price structure of W-IV, V, VI has greatly impacted the landed cost of such coal and make it commercially unviable as the coal quality is not at all commensurate with the present price structure.

Request has been made to BCCL for roll back of Washery grade coal price for the power sector to the previous price structure. Also, BCCL is requested to ensure supply of Non-coking coal with VM of around 20% or higher for the smooth function of power plants.

7. Submission regarding extending general Force Majeure relief till September 2020 against short-lifting by Power sector:

A number of power producers have been penalised by the respective Subsidiaries for short/ non-lifting during the lockdown period even as the power plants could not lift the quantity of coal allotted to them during that period due to significant dip in power demand, lack of workforce leading to unloading issues at the plant ends etc.

Request has been made to MoC and CIL so that the subsidiaries may be allowed to extend General Force Majeure for waiver of performance related obligations from 24th March till September 2020.

Submissions made by Nonpower Sector Consumers:

8. Submission to WCL regarding pending refund of excess payment against coal value and Differential CST amount:

For certain NRS consumers, Excess payment made towards WCL as coal value is pending since many months. Also, the refund of differential CST amount by the coal company is pending even after the consumers have submitted the ‘C form’.

Request has been made to WCL for immediate processing of the long-pending refunds considering the abject financial condition of the NRS consumers.