Power generation company Mahagenco's efforts to stop use of washed coal has come a cropper. Deputy chief minister Ajit Pawar, who holds the power portfolio, has concurred with the claims of the washery operators and decided to continue with use of washed coal.
Mahagenco was contemplating discontinuing use of washed coal due to extremely poor quality. In addition, several cases of irregularities had come to light in washing operations.
Coal is washed to reduce rocks, minerals and other contaminants. Ideally, the calorific value of washed coal should be higher and ash content lower. However, due to poor quality of washed coal, the very purpose of washing was being defeated. The generation company was unnecessarily incurring heavy expenditure on getting coal washed while not deriving any benefit.
In the meeting held on Monday, seven washery operators claimed that they were getting poor quality coal from Western Coalfields Limited (WCL) and that was severely affecting the quality of washed coal.
Mahagenco sources said that when Pawar asked WCL to supply good quality coal, the mining company officials protested and asked him to direct Mahagenco to check the quality of coal supplied by it. The operators then urged Pawar to appoint an independent agency to check the quality of coal supplied by WCL to them so there were no disputes in the future.
Pawar agreed to this demand and directed Mahagenco to initiate the process for appointment of such agencies.
He also resolved the contentious issue of penalty levied on washeries pertaining to coal rejected by Mahagenco. The generation company calculates the sale price of the rejected coal at par with coal rejected in its coal mills. The operators contended that the quality of their reject coal was far better and it was unjust to calculate the penalty on the basis of mill rejected coal.
The DCM directed Mahagenco and operators to work out a scientific method to determine the price of rejected washed coal. Later, Mahagenco officials discussed the modalities for floating fresh tenders for washed coal. The fuel supply agreement (FSA) with WCL and other mining companies also came up for discussion.
Mahagenco was contemplating discontinuing use of washed coal due to extremely poor quality. In addition, several cases of irregularities had come to light in washing operations.
Coal is washed to reduce rocks, minerals and other contaminants. Ideally, the calorific value of washed coal should be higher and ash content lower. However, due to poor quality of washed coal, the very purpose of washing was being defeated. The generation company was unnecessarily incurring heavy expenditure on getting coal washed while not deriving any benefit.
In the meeting held on Monday, seven washery operators claimed that they were getting poor quality coal from Western Coalfields Limited (WCL) and that was severely affecting the quality of washed coal.
Mahagenco sources said that when Pawar asked WCL to supply good quality coal, the mining company officials protested and asked him to direct Mahagenco to check the quality of coal supplied by it. The operators then urged Pawar to appoint an independent agency to check the quality of coal supplied by WCL to them so there were no disputes in the future.
Pawar agreed to this demand and directed Mahagenco to initiate the process for appointment of such agencies.
He also resolved the contentious issue of penalty levied on washeries pertaining to coal rejected by Mahagenco. The generation company calculates the sale price of the rejected coal at par with coal rejected in its coal mills. The operators contended that the quality of their reject coal was far better and it was unjust to calculate the penalty on the basis of mill rejected coal.
The DCM directed Mahagenco and operators to work out a scientific method to determine the price of rejected washed coal. Later, Mahagenco officials discussed the modalities for floating fresh tenders for washed coal. The fuel supply agreement (FSA) with WCL and other mining companies also came up for discussion.
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