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CCL’s shortfall claim on supply rings hollow
If Central Coalfields Limited (CCL) is to be believed, the power position in Jharkhand has improved and there is now no dearth of coal for the power sector. In the backdrop of its justification on restoring supply — suspended to small and medium-scale consumers for about a fortnight in the garb of meeting the escalating demand for coal by the sector — the company came out with this explanation.
CCL often holds either natural calamity or social unrest in the coal belt responsible for its failure to achieve the set target of production.
In a strategic move, the company had slapped an embargo on coal supply to small and medium consumers, presumably to skip the CBI dragnet in the ongoing investigation on illegal mining in Jharkhand.
The Jharkhand State Mineral Development Corporation (JSMDC) is the nodal agency of the State Government for coal supply to small and medium consumers in the State from CCL. CCL — a subsidiary of CIL — is supposed to supply 4.5 lakh tonnes per annum at the rate of about 4,000 tonnes per month to JSMDC.
JSMDC, in turn, meets requirement of a group of 143-odd small and medium scale industries. Small and medium scale consumers include entrepreneurs that have requirement of less than 5,000 tonnes of coal per annum and are unable to buy coal through e-auction.
Unfazed by the ordeal these small and medium scale consumers would face for want of coal, on October 29, CCL stopped supply to JSMDC to meet escalating demand from the power sector. Apart from JSMDC, CCL withheld supply to about 25 other non-core sector consumers that require about 20,000 tonnes per month.
The quality of coal used by the core sectors is entirely different from that supplied to JSMDC and other non-core sector consumers. The quality has been divided into different grades as per the content and the requirement of consumers is met according to their demand for particular grades of coal.
In fact, contrary to the claim made by CCL about its constraints to cater to the need of JSMDC and other non-core sector consumers, the quality of coal earmarked for consumers of core sectors — including power and steel — has nothing to do with the grade of coal required by JSMDC and other non-core sector consumers. While small and medium-scale consumers require below ‘D’ grades of coal, the power sector is supplied with coal that is Grade-D and above.
Meanwhile, when the central team of the Union Coal Ministry, including the Coal Secretary and CIL Chairman, visited Jharkhand recently, the State Government raised objections about the decision of the CCL.
State Mines Secretary AK Sarkar sought the intervention of the Coal Ministry. CMD of CCL RK Saha was subsequently asked to restore supply forthwith. Consequently, the State Government received a communiqué from the CCL last Thursday about the restoration of coal supply to JSMDC and other non-core sector consumers.
CCL is said to have claimed that since the power position had improved and there was now no dearth of coal for power sector, supply to JSMDC and other non-core sector consumers had been restored.
Although in order to ensure proper utilisation of coal allocated to the JSMDC, the Deputy Commissioners of the area concerned have been authorized to issue the utilisation certificates, questions are being raised about the proper utilisation of coal. The allocation of coal meant for utilisation by small and medium scale and non-core sector consumers, it is alleged, are sold to consumers out of the State.
However, neither does CCL have a mechanism to monitor operations of non-core sector consumers nor does it have legal sanction to initiate punitive action against the defaulters.
Significantly, when the CBI started breathing down the necks of CCL management for alleged irregularities in utilisation of coal supplied to non-core sector consumers, the latter sought a utilisation certificate from JSMDC instead. The reason behind this is believed to be a cover-up of possible irregularities by a section of officials. But JSMDC showed its inability to comply with CCL’s directive in light of the fact that the authority to issue the certificate was with the DCs.
To top it all, power and steel sectors both are still reeling under acute shortage of coal supply nailing the truth about justification by the CCL for withholding the supply to JSMDC and non-core sector consumers and its subsequent restoration after a fortnight.
