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Power firms to ink fuel pacts with CIL within a month: Coalmin

Last Updated: Friday, December 21, 2012 - 19:09

New Delhi: Seeking to put an end to the long tussle on fuel supplies, Coal Minister Sriprakash Jaiswal Friday said pacts in this regard are likely to be signed within a month's time between power producers and Coal India (CIL).

After nearly two-hour long meeting with Power Minister Jyotiraditya Scindia, Jaiswal said most of the issues have been resolved.

"Most of the issues related to FSAs (fuel supply agreements) have been addressed. The FSAs (between power companies and CIL) are likely to be signed in a month's time," Jaiswal told reporters here.

Noting that he had a "freewheeling and positive discussion" with the Coal Minister, Scindia said the power companies would sign FSAs over the next month.

The meeting was also attended by top officials of both power and coal ministries besides Coal India Chairman S Narsing Rao.

Scindia also said a joint policy on price pooling of coal is being worked out and was expected within ten days.

"We are likely to come out with a joint policy on coal price pooling over the next week or ten days.

The Prime Minister's Office (PMO) on December 17 had set a one-month deadline for the public sector power companies, including NTPC, to sign fuel supply pacts with CIL failing which FSAs would be withdrawn.

Country's largest power producer NTPC is among the companies that have raised concerns about quality of coal.

The PMO had in October asked power companies to sign the FSAs with Coal India by November-end even if they don't have binding pacts for sale of electricity.

The meeting had been convened to sort out issues impeding signing of FSA between CIL and power producers.

A total of 33 power units having a capacity of 9,671 MW have entered into modified FSAs with CIL so far.

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

In September, the CIL board had approved the modified FSA without price-pooling with 65 percent domestic coal and 15 percent imported coal at cost plus basis.

Cost-plus basis means cost of importing coal plus additional charges.


First Published: Friday, December 21, 2012 - 19:09
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