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CIL should settle FSA issues with NTPC: PowerMin to CoalMin

Last Updated: Friday, February 8, 2013 - 17:45

New Delhi: The Power Ministry has asked the Coal Ministry to ensure that Coal India settles the issues raised by NTPC on fuel supply pact so that it can be signed by the state-run power producer at the earliest.

"I...Request you to kindly instruct CIL (Coal India) to settle the issues raised by NTPC so that FSA (Fuel Supply Agreement) could be signed by NTPC at the earliest," Joint Secretary, Power, I C P Keshari said in a letter to the Coal Ministry.

The Prime Minister had on December 17 set one-month deadline for public sector companies including NTPC to sign fuel supply pacts with Coal India and had warned that if it did not happen the FSAs may be withdrawn.

According to sources, NTPC has raised objections to the quality of coal being supplied to it under the FSA.

In the letter, dated January 16, the Power Ministry has said that issues raised by NTPC are of significant commercial interests for NTPC "which again is a government of India company and you will agree that NTPC has rights to project their commercial interests, as much as CIL has, before entering into an agreement."

It has also asked the Coal Ministry for the resolution of the issue before January 21, as it would help NTPC "in getting approval of the board on the FSA".

So far, 55 power companies have entered into fuel supply pacts with Coal India. As on March 31, in total 92 FSAs have to be signed.


First Published: Friday, February 8, 2013 - 17:45
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