Coal news and updates

WB power cos may have to shell out Rs 340 crore

November 28: Four power generation companies based in West Bengal may have to shell out around Rs 340 crore on payment of fees for production of coal from their captive coal blocks in the current financial year, according to information available with ICMW.

As estimated by the coal ministry, these companies – namely WBSEB, WBPDCL, DVC and CESC – are expected to produce a combined 11.5 million tons of coal in 2014-15 from their seven captive blocks which are mostly operated through private mine developers-cum-operators (MDOs). As the Supreme Court has fixed a fee of Rs 295 per ton of coal produced, the total payout for these companies is estimated at Rs 340 crore.

Among these, the biggest loser would be WBPDCL which would need to pay around Rs 150 crore for its captive production of around 5 mt.
   
However, there is still confusion about the provisioning of the amount as the companies are awaiting clear instruction from the government.

“As such, we are not yet clear on how to provision for the fees. So we cannot comment on this. In fact, we are waiting for further communications from the government,” a source in a state-owned power generator said.