Global agency to check coal quality

Last Updated: Wed, Dec 12, 2012 13:40 hrs

Kolkata, Dec 12 (IANS) Coal India Ltd (CIL) Wednesday said it would appoint an independent international agency to check the quality of coal following a long brawl with India's major power producer NTPC over its quality and signing the fuel supply agreement (FSA).

"We will appoint a third party for sampling and quality check of coal for the first time. The agency will be an alternative for joint-sampling, which we currently do with all of our customers," CIL chairman and managing director S. Narsing Rao told reporters after the coal major's board meet here.

"This will not just be the case with NTPC but with all customers. Within the next two-three months we will invite bids to appoint the international agency in this regard," Rao said.

Power major NTPC had earlier repeatedly raised its concern over various quality issues and "inflated prices" of the coal behemoth.

NTPC's move came irrespective of any major breakthrough in the company's demand for a revision in FSA terms. However, Rao maintained Wednesday that as far as the FSA was concerned, there would be no change in the draft.

Although the prime minister's office had set a deadline for power producers and the public sector CIL to sign the FSA by November, only 33 companies have signed the pact till now.

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