35 power producers have signed FSAs with CIL: Govt
The Coal Ministry said 35 power firms have so far entered into fuel supply pacts with Coal India, amid the government stating that most of the issues relating to FSAs have been resolved.
January 02, 2013 / 17:21 IST
The Coal Ministry said 35 power firms have so far entered into fuel supply pacts with Coal India, amid the government stating that most of the issues relating to FSAs have been resolved. The statement follows the government announcing last month that power companies are likely to ink fuel supply pacts with Coal India (CIL) in a month's time.
"CIL (Coal India) after resolving the pending issues with power utilities have already signed 35 FSAs (Fuel Supply Agreements) 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 said.Also Read: Govt offers 17 coal blocks to PSUs, invites proposalsOn December 21, after a nearly two-hour long meeting, Coal Minister Sriprakash Jaiswal and Power Minister Jyotiraditya Scindia had told reporters that most of the issues related to the contentious FSAs have been resolved. The development followed Prime Minister's Office (PMO) directing power producers to enter into FSAs with CIL within a month. PMO directive on December 17 came after its November deadline for FSAs was missed, amid differences over various issues including coal quality.Noting that discussion were freewheeling and positive, Scindia had said: "We are not sitting on the opposite side of the table, we are sitting on the same side of the table... We will be ready to sign the FSAs over the next month." 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 favour of PSUs. Some of the power units which have signed FSA are Bajaj Energy, Rosa Power, Mundra Adani and Sterlite Energy, 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!
