Coal news and updates

Claims eat quarter of CIL power cos’ bills

November 13: The introduction of third-party sampling for the power sector appears to have opened a can of worms for Coal India Ltd (CIL) as a number of consumers are now raising disputes over the bills claimed by the company.

“CIL’s total outstanding claims from power generation companies would be to the extent of Rs 8,000 crore in which disputed claims would be about Rs 2,000 crore,” a source in the company claimed.

CIL’s Director (Marketing) B K Sinha could not be contacted for comments.

According to the source, the total outstandings from consumers like NTPC, DVC, GSECL and WBPDCL at BCCL etc would be to the extent of Rs 2,000 crore.

“However, if the consumers can establish that they have received inferior grade of coal, the entire Rs 2,000 crore will go in the settlement of that only,” the source said.

The grade slippage cases have come for ECL as well as SECL.

CIL Chairman (acting) Dr A K Dubey had told reporters after the AGM in Kolkata on September 10 that the company 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 on,” Dubey had said.

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