30 power plants have inked FSA with Coal India: Official
Amid the Prime Minister's Office (PMO) asking power companies to sign fuel supply agreements (FSA) with Coal India (CIL) by this month-end, so far 30 power plants have entered into pacts with the coal behemoth.
November 02, 2012 / 16:31 IST
Amid the Prime Minister's Office (PMO) asking power companies to sign fuel supply agreements (FSA) with Coal India (CIL) by this month-end, so far 30 power plants have entered into pacts with the coal behemoth. "Till now 30 power units have entered into fuel supply with Coal India. The unit with which the PSU has signed FSA is Maithon Power," an official in Coal India said.
The state-owned firm is likely to enter into pacts with 48 power units having a capacity of less than 30,000 MW. The Prime Minister Office had convened a meeting last month to sort out issues relating to signing of FSA between Coal India and power producers. It was decided during the meeting, that FSAs can be signed with power companies having long-term and medium term Power Purchase Agreements (PPAs) based on confirmation from Power Ministry that it is benefiting the consumers.The Power Ministry had last month said issues related to signing of fuel supply agreements with Coal India would be sorted out soon and no coal-based power project would face fuel shortage in the 12th Five-Year Plan (2012-2017).In September, the CIL board had approved the modified FSA without price-pooling with 65 per cent domestic coal and 15 per cent imported coal at cost plus basis. Other power companies with which CIL has entered into pacts are Lanco, Reliance Power (Rosa plant) and Adani, among others. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
