Maharashtra State Power Generation Co drags Coal India Ltd for failing to meet obligations

NEW DELHI: Maharashtra State Power Generation Co (Mahagenco) has dragged the world's largest coal miner, Coal India Ltd, and its subsidiary to the competition regulator for failing to meet coal supply obligations.

Mahagenco has accused Mahanadi Coal, Odisha's largest miner and arm of CIL, of delivering sub-standard coal, delaying supplies and abusing its dominant position.

"We have approached the Competition Commission of India (CCI) because we have received no assurance from either the ministries of coal or power for sufficient supplies," said Subrat Ratho, managing director at Mahagenco, Maharshtra's largest power generator. "We are at their mercy as there are limitations on the amount of coal we can import for blending."

At present, Mahagenco has a total installed thermal power generation capacity of 6800 MW, or more than half the state's total generation capacity. Coal India, through its eight subsidiaries, regulates all policy matters relating to production and distribution of coal.