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MP power generation company opposes new coal sampling rules

Madhya Pradesh Power Generation Company Limited (MPPGCL) is opposing new coal third party sampling and analysis rules formulated by the Coal India Limited (CIL) stating it was impractical and would entail additional financial burned on the company.

Officials of the MPPGCL told TOI they do not accept this arrangement and will raise objections before a central committee.

CIL's new sampling and analysis arrangement document states, "In the event of any dispute (which shall be raised not later than forty eight hours after analysis) at the time of third party analysis of set I and set II, the referee sample as in Set II shall be referred to analysis within seventy two (72) hours of the dispute but not later than eight (8) days of the collection of samples at any mutually agreed NABL accredited/government laboratory."

It implies, any claim for compensation regarding quality of coal supplied shall not be raised after 48 hours of sampling. However, MPPGCL gets sampling reports of coal quality after 4 to 5 days. In such a situation how will MPPGCL claim compensation within 48 hours? asked company sources.

MPPGCL has an agreement with CIMFR for Rs 13.5 crore for a year and all this money will be wasted if the analysis reports are not utilized. Besides, these MPPGCL will not be able to claim compensation against inferior quality of coal which may lead to losses above hundreds of crores of Rupees, added sources.

Price of coal is fixed as per its quality and there are often disputes between CIL and procuring companies like MPPGCL on quality supplied. In these cases of disputes procuring companies raise claims before CIL. These claims are raised on the basis of the samples tested at authorized laboratories.

Before August 14, when the new third party sampling and analysis arrangement was formulated by the CIL, sampling of the quality of the coal purchased by the Madhya Pradesh Power Generation Company for its thermal power plants, was done by a third party (quality testing agency) appointed jointly by both MPPGCL and CIL.

When asked, executive director (Fuel Management) of MPPGCL, A K Sankule told TOI, "We are not accepting these arrangements. It normally takes 4 to 5 days for us to get the reports. Issue is being raised at central level and a central committee which also has our representatives will decide its fate."

source: http://timesofindia.indiatimes.com