Consumers' Page

Present Coal Scenario

Total coal production achieved by CIL was 63.11 million tonnes in January 2020, a growth of 10.3% compared to 57.21 million tonnes in January 2019. For the period of April 2019 - January 2020, the miner has produced 451.52 million tonnes, lower by 3.9% compared to 469.65 million tonnes in the corresponding period of previous year. Total offtake was 56.05 million tonnes in January 2020, a growth of 6.9% compared to 52.44 million tonnes in January 2019. For the period of April 2019 – January 2020, the coal offtake was lower by 4.8% at 473.31 million tonnes compared to 497.07 million tonnes in the corresponding period of previous year.

Consumers’ Concern

1. Coal Stock Position

Thermal power plants of the country were adequately stocked with 34.25 MT of coal as of January 26, 2020, sufficient for 19 days consumption and up by 77% as against 19.36 million tonnes, equivalent to 12 days’ consumption at the same time last year. Supply to the Non-power sector has improved a lot and arrear of pending rakes has also reduced.

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 Coal Companies resulting in enormous delay in issuance of credit notes by the Subsidiaries.

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

3. 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.

4. Request for implementation of IRLC mechanism by CIL Subsidiaries

Though IRLC mechanism is embedded in FSAs of Independent Power Producers (IPPs) and provision is provided for the same but Coal Companies should provide the same relief especially to those IPPs who would like to avail the mode of payment through IRLC.

Understanding the constraints of working capital of the industries being stuck up for so many months though Coal India Limited has also considered the request of Non-regulated sector consumers for allowing sale of coal through IRLC except road mode but no notification has been received by the consumers so far from the Coal Companies in this regard. Therefore, consumers have requested for compliance of the IRLC mechanism at the earliest.

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

Some of the successful bidders of other tranches of NRS Linkage Auction could not procure coal due to non-materialisation of their FSAs or their FSAs got terminated or are on the verge of termination for various reasons.

These consumers have requested for allowing them to participate in the upcoming NRS Linkage Auction Tranche V with sufficient quantity for smooth functioning of their plants.

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. Request for extension of validity period of RDOs issued for the month of October2019 under Linkage Auction for a period of 15 days up to 29th February, 2020

Companies are facing problem due to erratic supply of G-8 grade coal from Chirimiri OCP of South SECL by road from early January 2020. In spite of having valid RDOs, consumers are unable to lift coal which may eventually lapse on 14th February 2020.

Therefore, they have requested for extension of RDO validity from Chirimiri open cast mine till 29th February 2020 or SECL may take necessary steps so that they may lift monthly quantity within the stipulated period

8. 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.

— RAILWAYS —

9. 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.

10. 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.