Coal India improves the quality of its mined coal; coal grade slippage down to 34% in Q3

State-owned Coal India (CIL) said its coal grade slippage in the third quarter of the ongoing fiscal was down to 34 per cent and clarified that provisional bills of customers later get adjusted once the actual quality of coal is tested. Grade slippage implies that the fuel’s grade during the sampling is found inferior than the declared grade.

CIL’s coal is divided into 17 grades. Each grade of coal depending on its heat content is assigned a Gross Calorific Value (GCV). If any reduction is found in the GCV of a particular grade of coal supplied then it is termed as ‘grade slippage’.

The statement comes in the wake of reports saying there were discrepancies in coal quality and the billed amount by Coal India. “Grade slippage during the third quarter of FY’21 was down to 34 per cent compared to 41 per cent the same period year ago,” the company said.

The PSU’s claim of better quality coal supplies was vindicated by the positive jump in the third party sample analysis as the grade conformity during the April-February period improved to 65 per cent from 59 per cent, compared to the year-ago period, it said in a statement.

During first two months of the current fiscal’s fourth quarter (January-February), grade slippages have declined further to 23 per cent compared to 42 per cent of in the same period last year. CIL initially bills customers based on the declared grade of coal supplied.

Such provisional bills are later adjusted, once the actual quality of coal is tested and established by an authorized third party sampling agency, which are Central Institute of Mining & Fuel Research and Quality Council of India.

This mutually agreed system of sampling is in vogue since 2016. CIL is further inducting two more globally reputed agencies for its third-party sampling initiatives. “No consumer suffers financial loss arising out of quality variation between the declared grade and the actual tested grade,” the company said.

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