Coal news and updates

SLC-LT asks CCL to settle Divine Vidyut’s coal supply issue

September 9: The Standing Linkage Committee (Long Term) or SLC-LT has directed Central Coalfields Ltd (CCL) to settle an issue regarding resumption of coal supplies to Divine Vidyut Ltd’s 20-MW captive power plant at Palgam in Jharkhand.

Divine Vidyut had sought resumption of coal supplies against the fuel supply agreement (FSA).

Stating that this is an operational issue, the SLC (LT) recommended that the issue must be solved by CCL at its end.

Incidentally, Divine Vidyut had signed an FSA with CCL in May 2011 for coal supplies at the plant, but did not receive the same as CCL stopped the supplies because of non-renewal of consent to operate by Jharkhand State Pollution Control Board (JSPCB).

The company finally got consent from JSPCB in June 2014, but CCL had raised a compensation bill for non-lifting of coal in 2011-12 and 2012-13.

Divine Vidyut had urged CCL to waive the compensation bill saying the non-receipt of consent from JSPCB was beyond its controls and it should be treated as force majeure.

However, CCL had refused the buy Divine Vidyut’s argument saying the FSA had been executed in May 2011 and the company had lifted only 3824.25 tons in 2011-12 while there was no lifting in 2012-13 and 2013-14.