Consumers' Page

Present Coal Scenario:

National Miner Coal India Limited started the New Year on a high as the coal behemoth increased its Coal production as well as despatch quantities for the month of January ’22 compared to the previous month. CIL’s total production for January was 64.50 MT, higher than 60.41 MT production in the same month last year. MCL has clocked the highest figures (17.34 MT) this month with more than 100% achievement of its target.

In terms of coal dispatch CIL achieved more than 91% of its monthly target in January with 60.85 MT significantly higher than the despatch quantity on the same month in 2021. Cumulative dispatch by CIL FY2021-22 so far has been 542.48 MT, more than 17% higher compared to the same period in the last fiscal.

Issues faced by both Power and NRS Consumers:

1. Submission for considering actual tare weight instead of designed tare weight fixed by the Railways for weighment of coal rakes:

As per Railway Board Circular issued in August, 2012, designed tare weight of different stocks plying in Indian railways had been fixed. For calculating permissible carrying capacity (PCC), designed tare weight of wagons is considered as benchmark along with permissible axle load limit. However, designed tare weight of wagons

is lower than the actual tare weight of wagons due to various reasons such as,

*Tare weight of different wagons under the same type would be different as is evident from different stencilled tare weights of the same type of wagons in a rake.

*Actual tare weight of new wagons may match with designed tare weight but in case of older wagons actual tare weight may be higher than the designed weight because of repairing, weathering, deposition of coal dust and extraneous material etc.

Therefore, calculation of RR based on designed tare weight leads to significant short-receipt of coal equivalent to the tare difference on a regular basis. Also, tare difference leads to significant over-charging of freight as the delivered coal quantity is lower than the RR quantity.

Request has been made to the Railway Board to measure tare weight of the empties in the in-motion weighbridges during the time of their inward movement and consider that actual tare weight measured on a real-time basis for calculating the RR so that the consumers may get designated quantity of coal for which freight charges and coal value are paid

2. Submission regarding complete or partial roll back of price increase of different grades of coal by SCCL as notified in January 2022:

Prices of different grades of coal (G-1 to G17) supplied by SCCL including the Washery Grades have been increased multiple times in the ongoing financial year. SCCL coal prices for different grades of coal have been revised 5 (five) times in total in the FY 2021-22. Such a recurrent and steep hike in coal prices is putting a huge financial burden on the coal consumers dependent on SCCL. Request has been made to the Ministry of Coal and SCCL to consider either complete or at least partial roll-back of the hiked coal price as notified by the company on 10.01.2022.

Issues faced exclusively by Power Sector Consumers:

3. Submission by Power sector regarding significant grade slippage in coal supplied via Rail Mode from ECL, NCL, CCL:

Power sector procuring coal from various CIL Subsidiaries such as ECL, NCL, CCL are facing significant grade slippage in coal supplied via rail mode during August-October period in 2021.For instance,

*Coal supplied from ECL’s POCP, Bankola, Sonepur Bazari sidings during that period have been 3-4 grade lower than the declared grades, while in a few rakes grade slippage has been as high as 7 grades.

*Coal supplied from NCL’s Dudhichua, Dudhichua WW, Bina WW, Block-B sidings have been 2-3 grade lower than the declared grades during that period.

*Coal supplied from CCL’s Birds Sounda, Churi sidings for those three months have been 2- 3 grade lower than the declared grades, while in a few rakes grade slippage has been as high as 5 grades.

Such consistent and significant grade slippage substantially increases the cost of generation for the power plants which directly impacts power tariff.

Request has been made to CIL and the respective Subsidiary Coal Companies to take adequate steps in order to eradicate grade slippage and ensure supply of FSA-grade of coal to the Power Sector consumers at the earliest possi-

ble. Also, re-gradation of certain mines may be considered where the cases of grade variation are rampant

4. Submission by Power Sector to expedite release of e-Auction rakes:

There is extremely low materialisation of rakes allotted under e-Auctions including Special Forward e-Auction for Power Sector and rakes allotted under the same e-Auction scheme are pending since long. Most of the rakes being loaded are FSA rakes. As a result, there is a huge pendency of e-Auction rakes especially from MCL and SECL. More than 600 rakes are pending from these two CIL Subsidiaries.

Irregular liquidation of e-Auction rakes does not allow the daily requirement of the Utilities to be fulfilled as the demand of coal has been soaring. On the other hand, it is also causing the working capital of consumers to be stuck for a long period.

Request has been made to Ministry of Coal, CIL, CEA and the Railway Board so that 15% - 20% of the total supply of rakes / day may be earmarked and supplied against e-Auction quantities in tandem with FSA (Linkage auction) rake as this would enable the Power houses to build up their stock levels..

5. Submission by Power Utilities to immediately increase supply of rakes from SECL on a daily basis:

Supply of rakes from various sidings of SECL has been significantly lesser than respective MSQs in December'21. Inadequate supply of coal from SECL's Dipka, Gevra, Kusmunda sidings under the Korba coalfields area has led to significant short-receipt of coal for the Power Plants procuring from these mines even amid soaring demand. Railway Board to take necessary measures in order to increase the number of rakes being loaded from these areas so that the committed FSA quantities to the Power Plants may be matched and pending quantities may be supplied as well.

6. Request by Power Sector for reimbursement of idle freight on account of short-lifting alongwith GST:

While certain Subsidiary Coal Companies (CCL, NCL & ECL) are providing refund of idle freight alongwith GST components charged by the Railways, SECL, MCL and WCL are not reimbursing the GST amount during refund of idle freight. As the Generators are paying freight charges to the Railways with GST, non-refund of this amount is leading to significant financial losses to these Utilities.

CIL has been requested to intervene so that all the CIL Subsidiaries reimburse the idle freights for underloading alongwith the GST amount.

Issues faced exclusively by NRS Consumers:.

7. Submission by NRS Consumers for immediately enhancing coal supply via Rail mode:

Following a dismal coal supply situation to the NRS Consumers via Rail Mode since April '21, owing to high demand of coal in the Power Sector, it was expected by the Industries including CPPs that the scenario would improve in 2022 and more rakes would be supplied on a regular basis. However, the number of rakes supplied to the NRS Consumers from CIL Subsidiaries like ECL and CCL has been alarmingly low while there is hardly any rake movements from Subsidiaries like NCL. This Supply crunch is causing serious threat to the sustenance of these Industries.

Multiple representations have been given to the Ministry of Coal, CIL and the Subsidiaries to immediately augment supply of coal rakes to the NRS Consumers as the last quarter of FY 202122 is ongoing.

8. Request for commencing supply of coal to NRS customers of WCL via Rail mode:

While Subsidiaries like SECL and MCL are dispatching a moderate number of rakes and even coal companies like ECL, BCCL and CCL have started supply via Rail Mode to the NRS consumers, there is hardly any supply of rakes from WCL and NCL to the Industries including CPPs which is seriously impacting the daily operations of these consumers. As per records till mid-January over 500 rakes allotted Non-regulated Sector has been pending.

Request has been made to WCL, NCL and Coal India Limited to immediately commence rake supply to the NRS Consumers so that they can run their plants.

9. Submission by NRS Consumers to regularise coal supply via Road Mode and extend RDO validity:

NRS Consumers having coal linkages with SECL's Chirimiri sidings are not able to procure coal even via Road Mode due to non-availability of coal in the mines. As a result, more than 75% of the DO quantity for December '21 could not be lifted by some of the consumers. As the supply of coal to the Industries via Rail Mode is already on halt, disruption in supply via Road mode as well may seriously jeopardise the daily operations of the Industries and impact their long-term lifting programme. Many Industries are also forced to procure coal from other sources by paying a higher price which is also affecting them financially. Request has been made to CIL and SECL to immediately regularise coal supply to the Industries via Road mode and also extend the validity of respective RDOs so that the consumers can lift the balance quantity before their DOs get lapsed

10. Submission regarding extension of Long-lead Traffic scheme for NRS Consumers:

As per Railway Notification issued on June 2020, distance-based graded concession for transportation of certain commodities including coal and coke was provided by the Railways in order to attract additional freight traffic where 20% freight concession was admissible on normal tariff rate (NTR) for movement of coal and coke for

distance beyond 1400 KM. The concession was valid till 31.12.2021.

However, supply of rakes to the Non-power Sector was severely affected during this period (from April '21) due to major upsurge in coal demand in the Power Sector. At a certain point supply of rakes to the Industries was stopped as well.

As the NRS consumers could not avail the benefit of concession provided by the Railways due to lack of rake supply, request has been made to the Railway Board to extend the distance based graded concession for one more year i.e. 31.12.2022.