Consumers' Page

Present Coal Scenario

Coal India has produced 84.36 million tonnes of coal in March 2020, registering a growth of 6.5% over 79.19 million tonnes produced in the same month of last year. Total coal production for the period of April 2019 to March 2020 stood at 602.14 million tonnes which is 0.8% lower than 606.89 million tonnes produced in the corresponding period of the previous year.

Coal offtake in March also registered a decline. The offtake amount stood at 53.45 million tonnes in March, 2020 compared to 59.60 million tonnes in same month of last year, registering a decline in offtake by 10.30% on a month-on-month basis. For the period of April 2019 to March 2020, total coal offtake stood lower by 4.3% at 581.73 million tonnes compared to 608.14 million tonnes in the corresponding period last year.

Consumers’ Concern

1. Request for exemption of advance payment through moratorium for Power sector:

Amidst unprecedented nationwide lockdown, partial or complete closure of many industries has further reduced the already subdued power demand. Many power plants are already running at low Plant Load Factor (PLF). Also, a number of central and state government power houses are facing severe cash crunch due to non-payment by discoms. Private power utilities are also facing the brunt due to the same. This situation may not be temporary and might have a cascading effect on to generating units for a longer period.

To tackle the present situation, Power Sector consumers have requested the Coal Ministry to provide exemption of advance payment against coal supply for secured quantities under vari

2. Requesting extension of timeline for coal value deposition for both Power and Non-power sector:

Due to the nationwide lockdown, it has become difficult for a number of coal consumers to deposit payment within revised timeline and lift material against DO already issued within the existing validity.

Request has been made to CIL to allow extension of timeline for deposition of coal value for both E-auctions and FSA consumers for at least 15 days from the day lock down is lifted

3. Request for Policy formation for Usance LC for both sectors:

Consumers have requested for a policy for implementation of Usance Letter of Credit (LC) as an additional mode of payment along with Irrevocable Revolving Letters of Credit (IRLC) for FSAs and Linkage coal by Road Mode as well to remit Coal Value.

4. Further Extension of RDO validity for both Power Sector & NRS:

Following appeals by coal consumers across all sectors amid the ongoing crisis situation, CIL’s Subsidiary coal companies have extended the RDOs for a specific time period. However, as the nationwide lockdown has been announced till 14th April and the situation will take more time to get back to normal.

Request has been made for further extension of the validity of DOs (from a minimum of 45 days to the extent possible) so that MSQs of the consumers do not get lapsed.

5. Restarting of E-auctions for Industries and Power Utilities:

In spite of the nationwide lockdown in March, many Power Plants and manufacturing units have continued to operate at their highest possible capacity to ensure uninterrupted supply in the market.

Although they have been receiving coal supplies under Fuel Supply Agreement (FSA) during the lock down period, but the supplies under e-auctions may be completed shortly. Most of our member entities depend on both FSAs and E-auctions for meeting their coal requirement.

Hence, in order to sustain operations, it is requested to kindly consider restarting offer of coal under various e-auctions soon.

6. Inability to accept new rakes as storage capacity at power plants and factories are full

Several Power plants and industries are going through complete or partial closure due to the present situation. Many of the consumers are also unable to accept new rakes at this point as their storage capacity at the factory and plant ends are already full.

Further, unloading of coal has become difficult at private sidings and factories without availability of workforce. Therefore, it is requested that coal companies may work in sync with the Railways in taking the decisions so that these plants are not over burdened with the supply.

Consumers have also appealed CIL to refrain from penalising the consumers for not accepting coal rakes/allotted quantity under the FSA during this period

7. Reserve price to be kept same as notified price in the forthcoming auctions for both sectors:

Due to increase in stock at CIL Collieries and reduced dispatches in March,2020, the consumers have requested CIL to keep the Reserve Price same as the Notified Price for the forthcoming Spot/ Exclusive/Special Forward auctions without charging any add-on.

8. Request for conversion of RcR to direct Rail mode during lockdown for power utilities and industries:

Presently distantly located customers are facing problems to manage road transportation of coal at mine end.

It is requested that quantity allocated under RcR mode may be converted to direct rail mode for the convenience of long distance customers.

9. Prayers for acceptance applications/correspondences online:

Under the present circumstances, request has been made to CIL and its Subsidiaries for acceptance of all applications/ correspondences online for supply of coal. Scan copies of deeds/ affidavits may also be considered under the condition of submission of originals after normalisation of situation.

10. Third Party Sampling issue for both the sectors:

The consumers have suggested that in case of non-sampling at loading end by TPA (CIMFR), FSA provision of extrapolation of most recent preceding month weighted average results of sampled quantity on non-sampled quantity need to be considered by CIL

11. Request to Subsidiaries for immediate return of BGs to the Utilities and Industries:

A request has been made to the consumers from both Power and non-power sector to consider immediate return of Bank Guarantees (BGs) which are not required to be retained by the Coal Companies. BGs expiring shortly for FSAs and Linkage schemes may be exempted from further extension. Consumers have appealed for refund of all eligible dues based on coal value, EMDs, Quality based refunds etc. Subsidiaries may consider return of coal value and EMD immediately in case of lapsed quantity as well.

— RAILWAYS —

13. Inability to accept new rakes amid nationwide lockdown as storage capacity at power plants and factories are full:

Owing to the ongoing lockdown, many plants have inadvertently opted for partial or complete closure. Therefore, many consumers are not able to accept coal rakes at this point as the storage capacity at their plants and factories are already full. Also, unloading of coal at private sidings and plant ends has become difficult without availability of workforce.

Under the current situation, it is requested that Railways may work in sync with the CIL Subsidiaries in taking the decisions so that these plants are not over burdened with the supply of new rakes.

14. Request for exemption of advance payment for booking of rakes:

Under the current situation, Power Utilities and Industries are facing major cash crisis due to lack of production. The situation might have a lingering effect on their business in the coming few months even after the lockdown is over.

The Railway has been requested to provide an exemption on advance payment for booking of rakes for a period of upto three months.

12. Appeal for refund of all eligible dues of Regulated Sector &NRS Consumers: