Lok Sabha Question No. 47 (STARRED), answered on 2025-07-23
Subject: Degraded Coal Supply by Coal India Limited
Ministry: COAL
Asked by: Shri Shyamkumar Daulat Barve

## GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA STARRED QUESTION NO. *47 TO BE ANSWERED ON 23.07.2025

## Degraded Coal Supply by Coal India Limited

†*47. Shri Shyamkumar Daulat Barve:

Will the Minister of Coal be pleased to state:

- (a)  whether  Comptroller  and  Auditor  General  (CAG)  found  many  cases  of  degraded  coal supply  by  Coal  India  Limited  (CIL)  to  its  consumers  repeatedly  during  the  last  five  years causing financial loss to power companies/other consumers;
- (b) if so, the details thereof along with number of complaints received by CIL during the last five years along with the action taken thereon;
- (c) whether it is a fact that according to CAG, consumers have suffered losses to the tune of thousands of crores of rupees due to grade slippage in some of the coal companies of CIL and if so, the details thereof; and
- (d) whether it is a fact that there is severe lack of transparency in the process of collection and analysis of coal by the subsidiaries of CIL and the third party sampling or impartial laboratory reporting is not being done and if so, the details thereof?

## ANSWER MINISTER OF COAL AND MINES (SHRI G. KISHAN REDDY)

- (a) to (d): A Statement is laid on the table of the House.

## STATEMENT REFERRED TO IN REPLY TO PART (A) TO (D) OF LOK SABHA STARRED QUESTION NO. *47  FOR  ANSWER  ON  23.07.2025  ASKED  BY  SHRI SHYAMKUMAR DAULAT BARVE:

(a), (b) & (c): To address concerns of the coal consumers regarding quality of coal supplied by the coal companies, a Standard Operating Procedure for Third Party Sampling & Analysis of coal at the loading end, was introduced by Ministry of Coal vide directives dated 26.11.2015. Sampling of coal at the loading end is conducted through Independent Third Party Sampling Agencies (TPSAs).

The Coal Controller Organisation (CCO) declares and notifies the grade (GCV) of coal on annual basis. Due to inherent heterogeneous characteristics of Indian coal and during mining of coal in the actual mining process, the grade of dispatched coal may vary from consignment to consignment as compared to the coal grade declared by the CCO. This difference in grade is  later  adjusted  with  the  finally  accepted  GCV  (analyzed  by  the  Third  Party  Sampling Agencies/ referee labs, as applicable). In case of up-gradation of billed grade, Debit Notes are issued,  whereas,  in  case  of  down-gradation  of  billed  grade,  Credit  Notes  are  issued.  The mechanism of issuing Debit Notes and Credit Notes ensures that there is no loss to consumers for coal grade slippages, if any.

Comptroller and Auditor General (CAG) flags the issues related to quality of coal supplied by Coal India Limited during the course of annual audits. At present, no CAG paragraphs related to coal grade slippage are pending.

However,  since  July  2023,  CIL  has  received  186  consumer  grievances  (other  than  CAG paragraphs) pertaining to coal quality related issues, out of which 171 grievances have been resolved.  Resolution  of  these  grievances  is  a  continuous  process  and  is  as  per  established procedure.

(d): All the subsidiaries of Coal India Limited follow a transparent process of collection and analysis of coal. Their consumers can choose any of the TPSAs empaneled for the purpose of Third Party Sampling.

To ensure transparency in the process of collection and analysis of coal by the TPSA, following clauses are provided in the RFP/Model Tripartite Agreement (signed between Seller, Purchaser & TPSA) and Fuel Supply Agreements (FSAs):

- i. The representative(s) of the Seller and Purchaser can witness the process of sample collection and preparation at loading point.
- ii. The sample for testing by TPSAs/Referee Samples are packed and sealed in temperproof metal bottles with 3D Holograms, QR Codes and RFID tags at coal sampling site itself.
- iii. Online tracking of samples at all stages is provided from sample preparation to analysis at Agency laboratory and referee laboratory.
- iv. Software system-based double blinding of coal samples is ensured for sending the same to NABL Accredited laboratory.
- v. Sample collection, preparation and storage is under CCTV Camera with live streaming facility.

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