Coal Ministry today said 35 power producing firms have entered
into fuel supply agreements (FSAs) with Coal India Limited (CIL), amid the government stating that most issues relating to such pacts have been
resolved. The statement follows the government announcing last month that power
companies are likely to ink fuel supply pacts with CIL in a month's time.
“CIL after resolving the pending issues with power utilities
have already signed 35 FSAs out of 114,” the coal ministry said in a statement.
The ministry also expressed hopes that the remaining 79 fuel
supply pacts would be signed shortly. “The balance (FSAs) are expected to
be completed shortly,” the statement reported.
Recently, in a meeting, Coal Minister Mr. Sriprakash
Jaiswal and Power Minister Mr. Jyotiraditya Scindia said that most
issues related to the contentious FSAs have been resolved.
The development followed the Prime Minister's Office
directing power producers to enter into FSAs with CIL within a month.
The PMO directive on December 17 came after its November
deadline for FSAs was missed, amid differences over various issues including
coal quality.
Both ministers had said a joint decision had been taken to
ensure that there would be no distinction on FSAs for public and
private power companies.
Private power companies have raised concerns over certain
FSA clauses, which they claim are in favor of public sector undertakings (PSUs). Some of the power units which have signed FSA are Bajaj Energy, Rosa
Power, Mundra Adani and Sterlite Energy, among others.
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