CIL to supply coal under MoU route till Jan-end

State-run CIL (Coal India) will supply coal till the month-end coal under the MoU route to power plants even as firms like NTPC are yet to ink FSAs (fuel supply agreements), sources said.

"As the earlier deadline expired on December 31, 2012 Coal India decided to extend the deadline by another one month till January 31 for supply of coal to power firms under the MoU route," a source close to the development told PTI.

"The supply of coal under the MoU route will be provided to all those power plants which have been commissioned as on April 1, 2009 up till now," the source added. An MoU is not a legally binding document but that route would be used till the issues holding up the FSAs are resolved.

The government had in May directed coal companies to supply fuel to power plants that have been commissioned till 2012 through the MoU route till the FSA issues are resolved.

"The ministry of coal has issued a directive to coal companies to supply coal to power plants commissioned till March 31, 2012 as well as those to be commissioned during 2012-13 through the MoU route as the FSAs are getting delayed," the power ministry had said. "With this directive, commissioned plants will be able to generate power without facing disruption in coal supply," it had said.

Earlier in January, the coal ministry had said that 35 power firms have so far entered into fuel supply pacts with CIL amid the government stating that most of the issues relating to FSAs have been resolved.

The statement followed the government announcing last month that power companies are likely to ink fuel supply pacts with CIL in a month's time.

The ministry also expressed hope that the remaining fuel supply pacts would be signed shortly.