Coal India Not To Be Split: Minister Piyush Goyal

Another challenge for the new government is addressing the issue of coal quality, over which state-run NTPC and Coal India have locked horns on several occasions.

"Some of the problems in these companies were genuine. It only needed application of mind to resolve," Goyal said, adding that the companies are now working in tandem.

Quality checks acceptable to both parties have been drawn up and the Coal India board has been asked to take a final view on the matter, Goyal added.

Electricity generating stations had sought quality checks or coal sampling at points where coal was unloaded.

"We are going to permit third-party inspection (at the unloading point also). As the customer is the king, he should have the right to appoint the inspection agency. However, Coal India will verify the antecedents and capabilities of the inspection agency," the minister said.

As an initial experimental measure by the government, the same agency will conduct quality checks in respect of public sector units and state units.

The findings of this three-month study will then be considered to find out how to move forward for other plants.

NTPC refused to sign fuel supply agreements with Coal India last year because it felt the mining company's supplies were of inferior quality.

The Power and Coal Ministry has also asked Coal India to reduce the quantity of fuel sold through e-auctions and make that portion available to power plants.

The company has been directed to limit e-auctioning of coal to 25 million tonnes this year from 57 million tonnes.

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