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Onus of coal quality ends at loading point - Coal ministry

Coal News - Published on Tue, 10 Jul 2018

Image Source: SteelGuru
Economic Times reported that in view of the continuing disputes between Coal India and power consumers over loss of quality of coal during transport, the coal ministry has reiterated that once coal in loaded on rakes the miner's responsibility on the quality of coal ends. The ministry said in a note that “As soon as coal is loaded in rakes the sale is complete under the Sale of Goods Act. Upon loading, the ownership gets transferred to power generators. Since the railways is the transporter engaged by coal buyers, including power generating companies, the issue of any loss during transit needs to be resolved by consumers with railways as the coal companies have no locus standi once the ownership has changed. Therefore, it would be appropriate that the coal consumers take up the issue of loss in coal incurred during transportation with the ministry of railways.”

The ministry’s clarification also states that from June 2016, tripartite agreements between power generators, coal companies and Central Institute of Mining & Fuel Rerearch have been signed for independent third party sampling by CIMFR to ensure quality of coal at the dispatch point, and at the same time CIMFR has also been entrusted by the power generators for quality checks at the unloading end of the coal so dispatched.

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Posted By : Amom Remju on Tue, 10 Jul 2018
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