VADODARA, Oct 11: The Calcutta-based South Eastern Coal Limited, a subsidiary of Coal India Limited, has agreed to provide monetary compensation for the inferior quality coal supplied to the Gujarat Electricity Board, which had resulted in a steady rise in power generation costs in the State.SECL chairman G K Jha agreed to give Rs 14.38 crores to settle claims lodged by the GEB on account of stones present in the coal supplies to the Board. The SECL also agreed to look into similar other claims, according to a Union Government notification.
The decisions come in the wake of a strong representation by GEB chairman Nalin Bhatt and senior Board officials during a meeting with SECL in Calcutta on Friday.
Bhatt pointed out that unless the coal factor improved and the calorific value and the coal quality maintained, it would be difficult for Gujarat to keep power costs reasonable.
As an important step towards maintaining coal quality, the meeting discussed the issue of joint sampling at the GEB's sub-stations instead of at collieries, a system put in place by Coal India in 1993.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.