Consumers' Page

Present Coal Scenario

Coal India has produced 66.26 million tonnes of coal in February 2020 compared to 58.05 million tonnes in the same month of last year, a growth of 14.2%. For the period of April 2019 to February 2020, total coal production stood lower by 1.9% at 517.78 million tonnes compared to 527.69 million tonnes in the corresponding period of previous year.

Coal offtake stood at 54.97 million tonnes in February 2020 compared to 51.46 million tonnes in same month of 2019, a growth of 6.8%. For the period of April 2019 to February 2020, total coal offtake stood lower by 3.7% at 528.27 million tonnes compared to 548.53 million tonnes in the corresponding period of previous year

Consumers’ Concern

1. Coal Stock Position

Power Plants are having healthy coal stock position at present. Due to muted demand of coal from thermal power stations, CIL has been able to bring down the accumulated arrear rakes of nonpower sector consumers in the ongoing fiscal.

2. Non-receipt of Referee Analysis Report, reconciliation and credit notes from different CIL Subsidiaries and request for formulation of a suitable policy for all Subsidiaries

In spite of depositing the required amount to the Referee Laboratory for analysing the samples consumers have challenged, they have not received Referee Analysis Reports since long. Due to non-receipt of these reports entire reconciliation procedure is held up at different Subsidiary

CIL has been requested for formulation of a suitable policy so that such situation does not arise in future.

3. Non refund of Royalty, DMF, NMET and differential GST amount in Credit Notes

Consumers are paying on the basis of Debit Notes if the grades of coal are found higher than the billed grades due to differential amount in basic price including Royalty, DMF, NMET and GST. If the analysed grade is found less than the billed grade, Credit Notes are only issued for difference in basic price and other tax components like Royalty, DMF, NMET and Differential GST amounts are not refunded.

Consumers are requesting for a solution of the same since long.

4. Compensation for the large size Stones supplied with Coal

There is a provision under FSA (IPPs) signed with Coal Companies to provide compensation against stones (>250mm) supplied with coal through a joint inspection. This compensation should be restricted upto 0.75% of the annual coal supplied as per the Agreement. The FSA condition is also restricted only to the coal supplied through RAIL mode whereas many customers are sourcing coal through Road mode.

Consumers have requested for modification of FSA documents.

5. Delay in Royalty Payment by Subsidiaries to the State Government

Coal Companies except MCL are taking almost 3-4 days to make royalty payment to the Government after the receipt of DOs by the consumers. Hence, actual lifting period is reducing to 41-42 days instead of 45 days.

Therefore, consumers have requested to follow the similar system like MCL where royalty is immediately paid/prepaid through online system to the Government

6. Request for inter group transfer of coal for CPPs

Interplant transfer of coal has been allowed initially for the State Gencos and later on for Independent Power Producers (IPPs).

Consumers in the CPP Sector have requested for the same facility to be extended for Captive Power Producers (CPPs) as well in order to reduce the cost of power generation, ensure coal availability round the clock at the plants and to reduce consumption of imported coal.

7. Performance Incentive Invoices issued by SECL for pending rakes

Consumers in the CPP sector have stated that they are in receipt of Performance Incentive (PI) invoice from SECL based on assumed quantity to be delivered against pending allotments for the year 2018-19. As per the terms of FSA, PI is to be charged by the coal company on actual delivered quantity.

Therefore, consumers have requested SECL to issue fresh PI Invoices based on actual number of rakes delivered against that Financial Year.

8. Grade Slippage from DBCP siding of ECL

The quality analysis reports sent by the consumers show that the amount grade slippage observed in the DBCP siding is in the range of minimum 200 GCV (February’19) to the maximum 1300 GCV (August’19). According to the latest data from one of the consumers, the received coal grade in January, 2020 is lower by around 350 GCV compared to the billed grade.

Therefore, consumers have requested to supply coal as per billed GCV from DBCP siding.

9. Grade slippage from Road sales Points of Lakhanpur Mines and BOCM Siding

Consumers in the Non-power Sector are consistently receiving inferior quality of coal mixed with shales from road sales dispatch points of

Lakhanpur mines and BOCM sidings of MCL from last two months. Quality report of received coal by the consumers showed that 41% of the total coal supplied to the consumers are below declared grade (G14) as stated by the consumers.

Therefore, consumers have requested for taking necessary action so that they may receive coal as per billed grade from road sales dispatch points of Lakhanpur mines and BOCM sidings.

10. Inferior quality of coal from Chirimiri, CPHC & Govinda sidings of SECL

consumers, procuring coal from SECL, are adversely affected as quality of coal supplies from Chirimiri, CPHC and Govinda sidings is grossly inferior in nature, contaminated with boulders, mud, shale and stones. Most of the consumers were compelled to cancel their indents from Chirimiri siding due to the same.

Under such circumstances, consumers have requested to arrange shifting of their remaining quantities to other secondary source.

11. Request to resume rake despatch from Junadih siding and load adequate rakes from Korba area of SECL

Though overall rake materialization has improved recently but there has been no rake despatch from Junadih siding of Korba area of SECL to NRS FSA consumers since July 2019. Another concern is that the rake materialization from other sidings of SECL Korba area is not sufficient to clear the backlog within the FSA tenure.

Therefore, consumers have requested to resume rake despatch from Junadih siding and load adequate rakes from Korba area of SECL to liquidate backlog rakes of FSA consumers of Non-regulated Sector.

— RAILWAYS —

12. Cancellation of rakes due to non-availability of coal from SECL & WCL and charging of wagon registration fees by Railways

Number of rakes to the industries (including CPPs) have been cancelled from different Sidings of SECL and WCL as the loading did not commence within stipulated time due to nonavailability of coal. Railways are also charging wagon registration fees from the consumers for cancellation of these rakes.

Consumers have requested for formulating a suitable policy so that the cancelled rakes are revalidated and seniority of such long awaited rakes do not get lapsed. Wagon registration fees should not be charged by the Central Railways as well for no fault at the consumers’ end.

13. Shortage of coal quantity in rakes

Consumers both in the power and non-power sectors have witnessed shortage of 2 to 6% coal quantity in the rakes received by them from almost all the CIL Subsidiaries. In a few rakes, shortages have gone up to even higher. Authorities should intervene into the matter in order to resolve it.

Earlier OKSR / NKCR - CPH-BSP-USL-APR-NKJJBP-ET (785 KMS) was not electrified hence the same was not used. Now since the route is electrified and some rakes are routed through this route, the consumers have requested for application of the same for all booking.

14. Recurrence of overloading since July-August 2019

Consumers are facing problem due to overloading in rakes from different sidings since mid of 2019. This is causing serious unloading problem at the plant site since the wagon cannot be clamped in the wagon tippler for unloading due to increased height of coal heaps.

Moreover, such overloading is also causing financial loss to the consumers for no fault on their part. Rakes are being overloaded even in the tune of more than 100 million tonne per rake resulting in huge punitive charges levied by Railways for overloading of wagons.

Consumers have requested for taking necessary action so that such overloading in rakes can be avoided.