The Association of Power Producers, an industry-body of the independent power producers in India, has suggested certain modifications to the gross calorific value (GCV) based coal pricing system to be implemented by the state-run Coal India Limited (CIL) in the near future.
The new system of coal pricing was scheduled to be rolled out from 1Apr’18, but some inconveniences have led CIL to push back the implementation. According to the buzz circulating in the industry, CIL is most likely to implement the new pricing scheme from July this year. Unlike, the prevailing pricing system, which is based on the corresponding grades of coal, the new pricing methodology is based on the energy content of the coal.
The association has opposed CIL’s methodology of determining the GCV inclusive of 5% moisture in the new pricing policy. The association wants the calculation of the GCV of coal on ‘as received basis’ (ARB), which will be in the line of global practices.
Also, incorporation of third party sampling agencies for determining coal quality was also suggested. The association has asked CIL to set-up more labs, and onboard more personnel to maintain timelines in preparing the sample reports.
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