Prior to implementation of Fuel Supply Agreement (FSAs) i.e. prior to 1st April 2009, there was no uniform sampling modalities across the different Power Generating Companies taking coal from different subsidiary companies of Coal India Limited (CIL). The sampling was being done as per mutually agreed modalities between the particular Power Generating Company and the Subsidiary Company from where coal was being supplied. This was stated by Sh. Piyush Goyal, Minister of state for Power, Coal & New and Renewable Energy (Independent Charge) in a written reply to a question in the Lok Sabha today.
The Minister further stated that joint sampling/3rd party sampling and analysis facilities at loading ends are provided to the power utilities under FSA for assessment of quality of coal jointly by the buyer and the seller and payment is made by the buyers as per the quality of coal so assessed jointly and thereby loading of proper quality coal to the power plants is ensured and taken care of. All other FSA holders, having annual contractual quantity of 4 lakh tonnes per annum and above, are also provided with the same facility of joint sampling/3rd party sampling at loading end.
As the payment of coal bills are adjusted based on analyzed grade of coal, so the question of additional burden on power companies due to joint sampling / 3rd party sampling at loading end as per provision of Fuel Supply agreement ( FSA ) does not arise.
The Minister further stated that the existing system of third party sampling had been introduced from 1st October, 2013 at the loading end in all Subsidiary Coal Companies of CIL and the system is continuing. As the power producers had sought more transparency on sampling / analysis, recently, power utilities have been advised to engage 3rd party agency from a panel of 25 reputed Third party agencies nominated by CEA for collection, and preparation of coal samples at loading end. Once delivery of Coal has been effected at the Delivery Point by the Seller, the property / title and risk of Coal so delivered stands transferred to the Purchaser. However, CIL Board has considered that public sector units may get the sampling analysis done at unloading end by the same agency exclusively for research purposes without any commercial implications.
RM/RS- USQ717 - LS
The Minister further stated that joint sampling/3rd party sampling and analysis facilities at loading ends are provided to the power utilities under FSA for assessment of quality of coal jointly by the buyer and the seller and payment is made by the buyers as per the quality of coal so assessed jointly and thereby loading of proper quality coal to the power plants is ensured and taken care of. All other FSA holders, having annual contractual quantity of 4 lakh tonnes per annum and above, are also provided with the same facility of joint sampling/3rd party sampling at loading end.
As the payment of coal bills are adjusted based on analyzed grade of coal, so the question of additional burden on power companies due to joint sampling / 3rd party sampling at loading end as per provision of Fuel Supply agreement ( FSA ) does not arise.
The Minister further stated that the existing system of third party sampling had been introduced from 1st October, 2013 at the loading end in all Subsidiary Coal Companies of CIL and the system is continuing. As the power producers had sought more transparency on sampling / analysis, recently, power utilities have been advised to engage 3rd party agency from a panel of 25 reputed Third party agencies nominated by CEA for collection, and preparation of coal samples at loading end. Once delivery of Coal has been effected at the Delivery Point by the Seller, the property / title and risk of Coal so delivered stands transferred to the Purchaser. However, CIL Board has considered that public sector units may get the sampling analysis done at unloading end by the same agency exclusively for research purposes without any commercial implications.
RM/RS- USQ717 - LS
