Agreement for Swapping of Coal

Agreement for Swapping  of Coal

The Inter-Ministerial Task Force has recommended shifting of coal linkage of Gujarat State Electricity Corporation Ltd (GSECL) of about 1.2 Million Tonne from South Eastern Coalfields Limited (SECL) to Western Coalfields Limited (WCL), leading to annual savings in transportation cost of about Rs. 100 crore to GSECL.

This was stated by Piyush Goyal, Minister of State (IC) for Power, Coal & New and Renewable Energy and Mines in a written reply to a question in the Lok Sabha today.

The Minister further stated that apart from this, swapping of 1.3 MT coal linkage between GSECL and Sipat TPP of National Thermal Power Corporation (NTPC) has also been implemented with annual potential savings of Rs. 458 crore to GSECL.

Presently, coal is supplied to GSECL against swapped quantities at the notified price of WCL. The terms and conditions of rationalization of coal linkage like swapping at mine and port etc. are mutually agreed between NTPC and GSECL.

The provision of Third party sampling and analysis at the loading end is available and the Central Institute of Mining and Fuel Research (CIMFR) is the third party for sampling and analysis.

The sampling process includes the number of samples, time limit for analysis of samples and Referee sample analysis. Both the coal company and the coal consumer power utility equally share the cost of sampling and analysis at the loading end. The Referee sample analysis is done at a government laboratory, the Minister added.

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