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Singaji power station pays Rs 1crore penalty for delay in unloading coal

In a unique distinction management of Madhya Pradesh-owned Shri Singaji Thermal Power Station (SSTPS) located at Dongaliya village of Khandwa district paid Rs one crore as penalty for delay in unloading coal from railway rakes while paying about Rs 4 crore to private firms for ensuring supervision of loading and movement of coal through railways.

This was revealed in a reply by SSTPS in reply to an RTI query by TOI.

Officials in their reply to query informed 2013-14 an amount of Rs 33.96 lakh was paid as penalty to railways for demurrage (delay in unloading coal) and in 2014-15 an amount of Rs 54.06 lakh was paid to the railways for the same.

In the reply officials said during 2013-14 an amount of Rs 21.6 lakh was paid to liaison firm M/s Niarsons, Nagpur and in 2014-15, Rs 3.86 crore was paid to M/s Karam Chand Thapar, Nagpur for timely loading of coal on wagons. Interestingly, 2014-15 when maximum amount was paid to the liaison firm, it was the same year that more demurrage was paid to railways, Rs 54 lakh.

It was also informed in the reply to the query that during 2013-14 and 2014-15 no amount paid as penalty to railways was recovered from liaison firms.

On contacting the officials of MPPGCL said, "Demurrage charges are recoverable from the contractor who is responsible for unloading of coal rakes, and not the liaison contractor whose job is limited to the receipt of coal rake at destination power station. Demurrage is recovered from unloading contractor subject to delay being attributable to him. In case, reason for delay is on part of MPPGCL, penalty is not recovered from unloading contractor and efforts are made for its waiver."

Interestingly, year 2014-15 when SSTPS was faced with maximum coal shortage it was same year when liaison firm was paid the most fee. During the year generating units had to be shut down on several occasions due to shortage of coal.

source: http://timesofindia.indiatimes.com