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Power firms say representatives of coal cos interfere in sample preparation

Coal India and its clients among power companies including NTPCBSE 1.33 % appeared to have settled the row over the quality of fuel by agreeing to third-party sampling on the ground, but now even that mechanism appears under a cloud. A few power companies have complained that the independence of the third-party samplers has been compromised and the samples do not reflect the actual quality of the coal sold.According to the minutes of a recent meeting organised by  the Central Electricity Authority, power utilities alleged that representatives of the coal companies refrain from witnessing the sample collection process, after which they ignore the results of the analysis on the grounds that they were not party to the sampling procedure.

Before third-party sampling was introduced, NTPC and Coal India had locked horns over alleged mismatch between the quality of fuel promised and that which was supplied. Subsequently it was decided that independent third-party sampling agencies will be appointed by the power companies after they are empanelled by Coal India. In the recent meeting, power companies also alleged that coal companies interfere during sample preparations.

Representatives of coal companies remove shale, band, stones and other extraneous materials during the sample preparation, which results in an unrepresentative sample, they alleged. "The area managers of coal companies do not accept analysis results that are not in line with the declared grade of coal to be sold by the mine. In the recent past they have also stopped dispatches after analysis results were not in line with the declared grade," the power utilities said, according to the minutes of the meeting, a copy of which has been seen by ET.

The power utilities said during the meeting that there are instances of wide variation between the grades on which bills are raised and the actual test analysis result of third-party agencies.

They also alleged that the coal companies refuse to accept the difference in the grades declared and supplied, and make necessary correction subsequently as was earlier agreed by Coal India. A senior Coal India official, however, said, "We will adhere to the terms and conditions  that had been earlier agreed between all stakeholders including power companies. It is our endeavour to provide cent per cent satisfaction to our consumers and we try our level best to attain it."

The power companies want coal companies to provide proper enabling conditions and infrastructure for preparation of coal samples and proper storage of referee samples at loading points. They said in the meeting that there is lack of proper infrastructure at coal companies' sidings for storage and drying of samples. Bags used for sample collection are not in good condition and there is no provision for securing the samples at the laboratories of coal companies, leaving open the possibility of the samples being tampered with later, the power companies said.

The power companies now want the rules to be tweaked so that coal quality results are not compromised and independence of sampling agencies is ensured.

source: http://economictimes.indiatimes.com