KOLKATA | March 21, 2017: The Coal Controller of India will conduct a fresh study of the energy content of coal extracted from Coal India’s (CIL) mines.

Based on this study, gradations will be declared for the 380-odd mines that come under Coal India’s subsidiaries, effective April 1. The exercise could lead to lower income for Coal India as the miner faces the risk of a large number of its mines being declared as producing coal with energy content lower than what was known before. The price of coal is directly related to its energy content.

“There would be no more grade slippages. Our organisation has laid the plan and engaged scientific institutions for the job,” said Coal Controller Anjani Kumar. “IIT Varanasi, IIT Guwahati and IIEST Shibpur have been involved. I can assure that from 2017-18 we will be hallmarking grade of coal for each siding. From 2017, declared grade of coal will definitely match with energy content in the coal supplied.”

Kumar was addressing a symposium here on coal quality organised by the Coal Consumers’ Association of India on Saturday. Earlier, as new mines were opened, Coal India’s subsidiaries would declare an average energy content for the coal in the mines. Billings was done on the basis of the declared value of energy in the coal.

However, consumers often complained that the declared energy content was higher than what was actually available. This was the bone of contention between Coal India and consumers including companies likes NTPC, said a coal sector executive.

In fact, the Coal Controller’s office had conducted a study of the energy content of coal extracted from some 20-odd Coal India mines. Following the study, declared energy content of coal from these mines was reduced, thus downgrading the variety of coal on the gradation chart. In an effort to sort this issue, the Coal Controller’s Organisation has decided to conduct a fresh study of the actual energy content in coal from all of Coal India’s mines.

(Source: http://economictimes.indiatimes.com/)