Power Min to approach CCI on quality issue between CIL, NTPC

The Ministry has moved a draft note inviting comments from other ministries on the matter.

Updated: Apr 15, 2013, 20:24 PM IST

New Delhi: The Power Ministry will approach the newly formed Cabinet Committee on Investment (CCI) on the "contentious" coal quality issue between state-run NTPC and Coal India.

The Ministry has moved a draft note inviting comments from other ministries on the matter.

It is felt that such issues could have an impact on the prospects of large investments in the long run.

"We have circulated a note on coal quality issue and are awaiting response from the Coal Ministry and would send it to Cabinet Committee on Investment soon after that," a Power Ministry official said.

Quality of coal has become a contentious issue between the two state-run companies NTPC and Coal India.

Power producer NTPC had refused to sign the fuel supply pacts with Coal India as the electricity generator said that the quality of coal supplied by Coal India is poor and could even cause damage to its machinery. The company added that it was not ready to accept inferior quality coal.

NTPC had said that the power plants need coal of minimum 3,100 kilocalories but Coal India at times supplied coal with average heat generating capacity of about 2,100 kilocalories, according to company officials.

Last week, Coal India snapped supplies at a few NTPC stations as the former alleged that the power producer was not making regular payments the company.

NTPC has also said that all the issues pertaining to the signing of FSAs with Coal India have been solved and the only hurdle is the inferior quality coal.

So far 60 power generation companies have signed FSAs with Coal India.

Power Minister Jyotiraditya Scindia and Coal Minister Sriprakash Jaiswal are likely to meet this week to iron out the differences between the two PSUs over coal quality.