PowerMin may knock on CCI doors over coal quality issue

Written By Unknown on Rabu, 17 April 2013 | 23.25

Power Ministry may knock on CCI doors if a meeting between Power Minister Jyotiraditya Scindia and Coal Minister Sriprakash Jaiswal tomorrow fails to resolve the lingering dispute between CIL and NTPC over the quality of fuel supplies.

Both the PSUs have been battling on the issue of quality of coal. NTPC has alleged that Coal India td (CIL) is supplying inferior quality of fuel. "All options are open to us. We are hopeful of a speedy and quick resolution. Let me see what comes out of meeting with Coal Minister tomorrow and then we will chart a way forward," Scindia said when asked whether the Power Ministry will go to Cabinet Committee of Investment (CCI) on coal quality issues.

On his meeting with Coal Minister Sriprakash Jaiswal tomorrow, he said: "I am meeting Coal Minister to sort out various issues between coal and power...Power, Coal and Environment ministries will meet on a quarterly basis."

Also read: Coal India aims to trim stocks by 26% in fiscal 2014

PSU majors -- Coal India and NTPC -- are at loggerheads over the quality of coal being supplied. NTPC, which is under the Power Ministry, has refused to sign fuel supply agreement (FSA) with Coal India citing concerns over quality of fuel.

Coal India's eastern subsidiary earlier this month had stopped supply to NTPC claiming that the power producer had not cleared dues since October 2012.

After government intervention, CIL had restored 50 per cent supplies pending resolution of the issue. Last week, the heads of two state-run companies met Coal Secretary S K Srivastava to find an amicable solution to the crisis. Also, Coal India had agreed to resume full supplies even as the power producer continued to raise the quality issue.



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