Coal India inks fuel supply pacts with 3 firms
New Delhi: Coal India Ltd (CIL) on Monday said it has signed fuel supply pacts with three power firms - Maithon Power, Rosa Power Supply and Adhunik Power and Natural Resource - and agreements are yet to be made in case of eight others.
So far, the coal miner had entered into agreements with 54 power generation firms - excluding these three.
"Of the 11 power generation firms, FSAs have been officially executed with 3 of the firms - Maithan Power Ltd; Rosa Power Supply Company Ltd and Adhunik Power and Natural Resource Ltd," CIL said.
"While 8 firms have already achieved their respective qualifying milestones, FSAs are yet to be inked with them. However, Memorandum of Understanding has been entered into with 2 of those 8 firms awaiting formal signing of the FSAs. They are NCCP, Dadri Stage-II 2nd Unit (NTPC) and Damodar Valley Corporation Mejia TPS Unit 7," a CIL statement said.
It added that the firms with whom coal companies have not yet entered into FSAs are Dhariwal Infrastructure (P) Ltd; SKS Power Generation Chattisgarh Ltd; NRI Power & Steel (P) Ltd; Maruti Clean Coal and Power Ltd; Neeraj Power (P) Ltd and UPPCL (Bara TPS).
"Coal companies will diligently examine and adhere to all the provisions and terms of reference and norms of LoA before signing the FSAs," CIL said.
The Coal Ministry has said CIL is taking all precautions to verify the required milestones and conditions before signing FSAs with companies.
It had earlier questioned CIL for considering FSAs with 11 power developers, worth 5,935 MW capacity, saying they were yet to achieve critical milestones related to their projects.
However, the Ministry today said: "So far, 54 FSAs have been signed, while in 11 mentioned cases it was decided to verify the present status.... It was observed that milestones related to acquisition of land, financial closure... Had been achieved by the applicants in terms of provision of letter of assurance issued to them.
"After this confirmation, out of these 11 cases, FSAs have been executed only in three cases while in two cases MoUs have been signed for coal supply as per advise of Ministry of Power...The other six cases are under consideration," it said.
The list of 11 firms included projects of some big developers like NTPC, Tata Power and Reliance Power.