NTPC wants coal with higher calorific value; DVC prefers lower value

The Power Ministry has decided to approach the Prime Minister-headed Cabinet Committee on Investments to sort out the difference with Coal Ministry over the quality of coal supplied by Coal India.

“We have floated the note (draft cabinet note) for inter-ministerial consultations. We have raised the issue for NTPC and Damodar Valley Corporation (DVC). The sampling and quality issues will be applicable to all power developers,” said a senior Power Ministry official.

The Power Ministry’s move comes after meetings between Coal Minister Sriprakash Jaiswal and Minister of State (Independent Charge) for Power Jyotiraditya Madhavrao Scindia failed to resolve the tussle between two public sector firms Coal India and NTPC.

According to the note, if Coal India supplies fuel graded less than 3,100 kcal/kg, it would not be considered under annual contract quantity (ACQ). Moreover, the average of sampling result done at coal loading point and receiving point at the power station would be considered.

NTPC is refusing to sign fuel supply agreements (FSAs) with Coal India for nearly 5,000 MW capacity. In March, the power generator said it will pay only for the quality of coal that is being received at the power plant and not for what is being billed by the miner.

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