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52 power plants yet to sign fuel supply pacts with Coal India

Last Updated: Wednesday, July 24, 2013 - 19:00

New Delhi: State-owned Coal India Ltd (CIL) is yet to enter into fuel supply pacts with 52 power plants, long after the passing of the second deadline set by the Prime Minister's Office for signing of FSAs by early this year.

"So far only 79 power plants have entered into fuel supply agreements with Coal India and 52 more FSAs yet to be signed," said an official source.

He declined, however, to divulge the names of the companies involved.

The Coal Ministry informed the Prime Minister's Office (PMO) last month that "there are 131 cases of power plants/ units which are...For signing of FSAs by CIL and its subsidiaries".

Power firms had earlier this year failed to meet the second deadline set by the PMO for signing FSAs. PMO had in December last year directed that the remaining FSAs should be signed within a month's time.

The directive in December, 2012 came after the November, 2012 deadline for signing of FSAs was missed.

Power firms, including NTPC, had refused to enter into FSAs with CIL over quality issues of the dry-fuel supplied to it and had stopped payment to Coal India subsidiary, Eastern Coalfields Ltd.

Retorting to the step, the world's largest coal miner had temporarily stopped supply of fuel to NTPC which was resolved later following government's intervention. NTPC and CIL have inked FSAs for 28 units, with one remaining.

The companies are yet to complete FSA for a 500 MW joint venture thermal power plant of NTPC and SAIL at Bhilai.

Earlier, the government issued a Presidential Directive to CIL to sign FSAs with the power producers assuring them of at least 80 percent of the committed coal delivery.


First Published: Wednesday, July 24, 2013 - 19:00
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