CIL refuses to meet NTPC's fresh demands on fuel supply pacts

The ongoing battle between the two state-owned firms NTPC and Coal India Ltd seems to be far from over as the two have now locked horns over a new issue. A media report said that NTPC placed some fresh demands in the existing fuel supply pacts—regarding quality of coal and losses during transport—which were turned down by Coal India Ltd (CIL) as 'absolutely baseless'.

The move, which came at a time when country needs infrastructure the most, would derail the government's efforts to free huge investments stuck due to coal shortage.

A media report said that NTPC has refused to accept coal with gross calorific value (GCV) less than 3,100 kilocalorie per kg (kcal per kg), corresponding to low-quality F-grade coal.

However, annoyed with such a demand placed by NTPC, CIL told a media agency that "Also, some of our consumers are already saying they will not accept high-grade coal on pricing issues. Now, NTPC says it will not buy low-grade coal. Tomorrow, some others would refuse mid-quality coal. If consumers start cherry-picking, whom will we sell our coal to."

Read more about: coal india
Story first published: Tuesday, March 19, 2013, 9:30 [IST]
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