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ALL INDIA INSTALLED CAPACITY

ALL INDIA INSTALLED CAPACITY

Friday, November 19, 2010

Status of coal sector reforms-III: GCV based coal pricing, grading still to be adopted

Unlike on other recommendations of the Committee, the union coal ministry has failed to make much headway towards adopting the internationally-accepted, gross calorific value (GCV)-based pricing and grading of indigenously produced coal.

  • This delay is mainly due to the lapses of NTPC in initiating the mechanism as a pilot study at some of its power stations, and Coal India Limited's inability to install automatic mechanical samplers (AMS) at its coal loading points. 8These two PSUs were expected to coordinate the trial for the proposed bandwidth price structure, initially, for two months. 
  • However, on the brighter side, ClL has already submitted a revised proposal, delineating GCV values corresponding to sub-graded useful heat value (UHV) bands and respective price ranges, along with a commitment to install AMS in a time-bound manner.8Pertinently, the Planning Commission had finalized the pricing pattern for the new sub-graded system, based on UHV. It was decided that the power sector would be supplied only 'A' to 'F' Grades of coal, while the 'G' and 'H' Grades would be reserved for other consumers. 

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