Business OpportunitiesConsumers peeved at inferior coal quality
The coal consumers drawing coal from the Basundhara coal block under the command area of Mahanadi Coalfields Limited (MCL) continue to grapple with the problem of inferior quality of coal supplied to them.
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Hundreds of consumers across sectors like coal-based power plants, captive power plants, sponge iron, paper and chemicals are getting inferior coal from this coal block for the past six months. The coal produced from the Basundhara block is admixed with stone, overburden and other foreign material, said an industry source. The Basundhara block produces 3-4 million tonnes of coal per annum.
The e-auction coal consumers were the worst hit as the MCL management made no effort to improve quality of e-auction coal loaded in the rakes which were booked under abnormal premium, the source added
“The coal quality from the Basundhara coal block has deteriorated over the past few months. No other colliery is located near it and the consumers with units close to this coal block are bound to buy coal from the block”, said Subrata Banerjee, president of the Kolkata-based Federation of Coal Consumers, Dealers and Traders of India ((FCCDTI).
The federation alleged that good quality coal from the Basundhara coal block is being supplied to some preferred consumers through underhand deals at higher prices.
“We have repeatedly taken up the issue of inferior coal quality with the officials of MCL and Coal India Limited (CIL). Each time we approach these coal companies with our complaints, the coal quality improves overnight but very soon the situation reverts to the earlier state, leaving the consumers high and dry”, said Banerjee.When contacted by Business Standard, a senior CIL official said, “We have received sporadic complaints of inferior coal quality from the Basundhara coal block. CIL has responded to these complaints and the coal supply from the block has improved.”Earlier, FCCDTI had drawn the attention of the Prime Minister on the problem of inferior coal supplied from the Basundhara coal block.