Captive Power Producers Protest New Evacuation Facility Charge By CIL


Captive Power Producers Protest New Evacuation Facility Charge By CIL

Industry body Indian Captive Power Producers Association (ICPPA) is protesting against a new “Evacuation Facility” charge of Rs 50 per tonne introduce by state-run miner Coal India Ltd (CIL) for coal supply to power generators.

In separate but similar letters written to coal minister Piyush Goyal, coal secretary Susheel Kumar and Coal India Chairman Gopal Singh, the association said the new “arbitrary” charge has led to an increase in coal prices in a range between 4 per cent and 7 per cent, over and above the notified price. The additional impact on price has been calculated taking into account sales of coal in “most available” quality grades between G-8 and G-13.

“It is double suffering for CPP on account of stopped coal rakes by government in past 8- months and CIL’s indirect price rise adding 12-20 per cent on notified price, that too, after 20 per cent increase in 2016,” ICPPA said in the letter sent to Goyal and shared with the media. The new charge comes on the back of other indirect charges – Surface Transport Charges and Coal Crushing Charges — levied in September 2017 which had jacked up prices by 8-14 per cent, the industry body said. Read More…

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