Coal procurement: Tangedco denies corruption charges

The crux of the allegation that anti-corruption NGO, Arappor Iyakkam, was that the power utility purchased inferior quality coal at the price of higher grade fuel, incurring an alleged loss between Rs 1,700 crore and Rs 3,000 crore.

Denying these in a statement, Tangedco claimed the allegation that it bought 6,000 kCal/kg air dried basis (ADB) coal at the price of 6,000 kCal/kg gross as received (GAR) was false.

According to it, ADB is the gross calorific value of coal, while GAR, which gives a measure of coal quality, could only be derived from ADB values.

There was no misuse of any technical points for price comparison as alleged by the activists, it added.

The statement that procurement price was calculated using the GAR index without converting it into the ADB equivalent is also incorrect, it said. “The prices finalised by Tangedco are compared with Platts index price, Argus index price and with prices finalised by other power utilities after giving due weightage to ADB value or GAR value, total moisture, ash and Sulphur parameters,” the statement added. Also, the charge that 6,000 ADB coal is procured at 6,000 GAR coal price was factually wrong, it said, adding, “6,000 ADB coal is procured by Tangedco by comparing with equivalent prices of 5,900 and 5,800 GAR coal after bringing the prices equivalent to Tangedco’s 6,000 ADB coal”.