CIL tweaks provision on compensation, incentive under FSA
New Delhi: State-owned Coal India (CIL) has tweaked the provision of calculating the compensation and incentive under fuel supply agreements models for the non power consumers like cement, iron and steel.
"The provision of computing compensation and incentive under FSA (Fuel Supply Agreement) models applicable for the non power consumers for the existing as well as new consumers have been modified," Coal India in a letter to its subsidiaries.
"From the existing provision of computing compensation/ incentive on the basis of the 'Basic Price of the Highest Grades of coal mentioned in the schedule' it will be computed on the basis of 'weighted Average base price of grades of coal supplied'. The applicable FSA provisions shall stand modified accordingly," it said.
The modification, it said, has been approved by the competent authority and shall be effective from today, it added.
CIL has signed 157 FSAs so far for a capacity of 71,145 MW.
The coal PSU is yet to enter into fuel supply pacts with 15 power units as certain issues related to them, such as change in ownership and extension of supplies, are being considered separately.
The Cabinet Committee on Investment (CCI) had earlier stated that the timelines for signing of fuel supply pacts for power projects of 78,000 MW capacity should be met.
Two deadlines set for the signing of FSAs by CIL with the power producers could not be adhered to. The Coal Ministry had set the deadline of August 31, 2013 for signing of the FSAs, which could not be met. The second deadline was set for September last year.