The Telegraph
Thursday , December 13 , 2012
Since 1st March, 1999
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Focus on coal quality

Calcutta, Dec. 12: Coal India Ltd (CIL) is planning to engage a consultant to certify its coal, following complaints from power producers on the poor quality of the fuel.

Coal India will invite a tender within the next two to three months.

Power producers such as NTPC and Damodar Valley Corporation has been suggesting that the mechanism of sampling was insufficient to determine the quality.

At present, the miner does a joint sampling of quality with the customers at the point of loading.

“We are thinking of engaging an independent third party consultant for sampling and quality check of coal,” Coal India chairman S. Narsing Rao said after the miner’s board meeting here today.

“This will not just be the case with NTPC, but with all the customers. We will invite bids to appoint an agency in this regard within two to three months,” Rao said.

“Quality will not be an issue. We will go by the analysis of the third party and we will only bill according to that,” he said, adding the move will help to iron out the differences between the coal supplier and power producers.

According to CIL sources, the company was looking at international agencies such as Geneva-based SGS, which provides services in inspection, verification, testing and certification services.

NTPC chairman Arup Roy Chowdhury had already raised the issue regarding the quality of coal and high prices with power secretary Uma Shankar.

According to the power producer, problems with the quality started to emerge since January when CIL shifted to pricing based on gross calorific value from useful heat value.