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Bharat Coking Coal suffers INR 95 crore loss on blending coking coal - CAG

Steel News - Published on Fri, 17 Aug 2018

Image Source: West Cumbria Mining
Times Of India reported that Coal India arm BCCL suffered INR 95 crore loss due to blending inferior grade coal with superior steel quality dry-fuel. Bharat Coking Coal Ltd one of the fossil fuel producing subsidiaries of CIL, is engaged in mining, washing and distribution of coal to meet the energy requirement of its consumers and produces both coking and non-coking coal. Government auditor CAG in its latest report said that "Steel grade coal is precious, fetches higher revenue and can be used directly by consumers in the steel sector. Due to relatively low ash content, it does not require washing. However, BCCL blended steel grade coal with inferior washery grade coal in its four washeries, instead of supplying the steel grade coal directly to customers and earning higher revenue.”

It said that this has resulted in loss of INR 95.09 crore to the company during 2013-14 to 2015-16, worked out on a conservative basis.

Coking coal having less than 18 per cent ash is termed as steel grade coal, which can be used directly by consumers in the steel sector.

Coal having higher ash content (18 per cent to 35 per cent) is termed washery grade coal and requires washing to make it suitable for use in production of steel.

It said that during 2013-14 to 2015-16, BCCL fed 26.33 lakh tonnes of coking coal into its four washeries by blending 13.91 lakh tonnes of steel grade coal with 12.42 lakh tonne washery grade coal, which finally yielded only 6.64 lakh tonne of washed coal (25 per cent) along with middling, slurry and rejects.

The government auditor pointed out that this was done by BCCL despite having a memorandum of understanding with Tata Steel and SAIL for supply of raw steel grade coking coal.

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Posted By : Ratan Singh on Fri, 17 Aug 2018
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