Coal news and updates

CIL keeps Rs 800 cr provision for grade dispute with NTPC

September 10: Coal India Ltd (CIL) has kept a provision of Rs 800 crore in its annual accounts towards reconciliation of a dispute over grade slippage with NTPC Ltd.

“This provision is for grade slippage for supply to NTPC. It’s still under settlement. Some reconciliation is going on,” CIL Chairman A K Dubey said on the sidelines of the 40th annual general meeting of the company in Kolkata.

The disputes involved a couple of CIL subsidiaries including Eastern Coalfields Ltd (ECL) and dated back to a few months, he said.

Besides, the company has kept a provision for mine closure (of Rs 527 crore) and the Jharia and Ranigunj Resettlement Scheme, he added.

To a question, he said CIL had total reserves of Rs 52,000 crore as of March 31, 2014. Of these, Rs 10,000 crore were earmarked for foreign acquisitions, Rs 25,000 crore for capex till 2016-17, Rs 3,000 crore towards rail and logistics infrastructure development, Rs 2,500 crore for washeries and remaining Rs 11,500 crore as working capital.