Coal news and updates

SC’s should consider coal supply situation in its final judgement: ICMA

September 19: The Indian Coal Merchants’ Association (ICMA) hopes that a good sense will prevail in the final judgement of Supreme Court likely to be announced next week on de-allocation of captive coal blocks and also urged the government to revisit its directive to reduce the quantity of coal offered through e-auction route.

The judgement by Supreme Court, declaring all allotments of coal blocks for captive consumption as illegal has shaken the very base of the core industry, the ICMA president, V K Arora, said while addressing the association’s 83rd Annual General Meeting in Kolkata on September 19.

“Unless, a workable arrangement evolves out of the final judgement, the very basis of coal supplies to large number of industries may come under cloud. We hope, good sense will prevail in the final judgement,” Arora said.

On reduction in e-auction quantity by the government through a directive, the ICMA president said, “E-auction has been meeting the requirements of all consumers which have not had the privilege of having direct linkages or FSA.

“This was a fair arrangement taking care of all the new consumers. CIL, had allocated quantities for e-auction at 10%, which now seems to have been reduced to 5%. This has very clearly rattled the industry at large. Reduction in e-auction coal by 5% does not make a major difference for the power sector, but creates substantial dissatisfaction to hundreds of consumers spread all over the country and the quantities need to be revised,” Arora said.

He also pointed that there is a general complaint about quality of coal being supplied by Coal India Ltd (CIL).

“Consumers often complain that the quality of coal delivered to them is at least 3-4 grades lower than the quality charged in the bill. This is happening across the board in almost all the coal companies. NTPC has the strength to fight it out whereas smaller consumers do not have the strength or the means to do so,” Arora said.

“There has to be a little more integrity of approach by CIL so that the credibility is well established in the market,” the ICMA president added.