CCAI Newsletter May-20

Page 6

CONSUMERS’ PAGE Common concerns faced by both Power and Non-Power sectors: 1. Suggestions from consumers’ end towards import substitution: z Presently per unit energy cost from domestic coal is not commensurate with the energy cost from imported coal. This might interest coal consumers to depend on imported coal more as global coal price has crashed following the worldwide outbreak of pandemic this year. z Under the current situation, consumers have suggested for certain measures to reduce domestic coal price including charges applicable later like withdrawal of Evacuation Facility Charges and Surface Transportation Charges (STC) for distance of 0-3 kms. z Consumers still face the issue of grade slippage in domestic coal from various subsidiaries despite several measures by the gov-

06 | CCAI Monthly Newsletter May 2020

ernment to eradicate this problem. z It is strongly urged that domestic coal price is commensurate with GCV as received at the plant end. z In order to bring in more transparency and consumer satisfaction, coal consumers have appealed for an option to choose Third Party Agency for coal quality assessment. z Coastally located plants opt for imported coal as ocean freight is significantly reasonable for them. In order to curb the coal sourcing from imported origin, CIL may consider introducing alternative modes of transportation including a combination of Rail/Road and Waterways. CIL may also strengthen logistical parameters and better evacuation facilities to ensure uninterrupted supply of coal.

2. Time bound release of pending credit notes and refund of statutory charges:


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