CUDDALORE:
Chairman-cum-Managing Director of Neyveli Lignite Corporation A.R. Ansari has said that it is difficult to supply lignite at fixed prices to industries because this factor is controlled by the Central Electricity Regulatory Commission.
Moreover, the prices are also determined by stripping ratio and groundwater control. The price of lignite is going up owing to higher compensation to be paid to land providers and increased prices of specialised mining equipment and their maintenance, Mr. Ansari said. A statement from the NLC said that Mr. Ansari was addressing the inaugural meeting of the Regional Coal Consumers' Council (RCCC), constituted by the Union Ministry of Coal, in his capacity as its chairman at the NLC corporate office at Neyveli on Tuesday.
Representatives of big, small and tiny industries participated in the meeting. They put forth the demands that price variations in lignite should be controlled to the possible extent, quality assurance given, supply be carried out through Fuel Supply Agreement (FSA) and the lifting time for lignite increased. Mr. Ansari said that low grade lignite should be consumed first and high grade fuel conserved for the future. For effecting the sale through the FSA, it might require a dedicated mine for which the approval of the Union Ministry of Coal was a must.
He ruled out the possibility of extending the FSA system to consumers because small buyers, particularly in the brick kiln industry, were facing difficulties in importing the fuel.
A statement from the NLC said that the main objectives of the Council were to look into the grievances of the consumers, their lignite requirements and supply of lignite in a transparent manner to the genuine buyers. After utilisation of lignite for its power plants, the NLC had been selling lignite to the cement, chemical, sugar, paper and brick industries. In all, 10 big industries and 57 small and tiny units were participating in the e-auction for lignite.
The NLC had been supplying 19 lakh tonnes of lignite annually to a private power plant at Neyveli. NLC directors B.Surender Mohan (Mines) and R.Kandasamy (Planning and Projects) and representatives of the industries were present.
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