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Jul 17, 2012, 09.38 AM IST
Amid indications of soon receiving a written communication from the Prime Minister's Office in regard to signing of fuel pacts with power firms, Coal India board will now meet on July 31 to resolve the supply row with power firms.
The coal giant, so far, has postponed board meetings a couple of times including on July 5 and July 10.
"The PMO had held a meeting on July 6 to resolve the issues impeding fuel supply agreements (FSAs) with power firms.
Certain clauses of the FSAs, including penalty, had become a bone of contention between the Coal and Power Ministries and eventually the PMO had to intervene to break the deadlock.
The Prime Minister's Principal Secretary Pulok Chatterjee held a meeting on July 6 to take stock of the situation, particularly, relating to the quantum of assured supplies of coal to the power companies.
As per the earlier directive of the PMO, CIL was to supply at least 80 per cent of the committed quantity of the fossil fuel requirements of the power firms.
Citing reasons such as production constraints, CIL had wanted it to be reduced.
The PMO meeting, as per sources, has decided that CIL would supply between 65% and 80% of the requirement of power companies, for which FSAs could be signed.
It was also decided during the meeting that CIL would place coal import order on MMTC or STC. The coal PSU would determine the mechanism for coal price pooling, sources said.
Citing introduction of new clauses in the pact, NTPC and many power companies have declined to sign FSAs with CIL. So far, only 27 power plants including that of Lanco, Reliance and Adani, out of 48, have signed FSAs with the state-run coal giant.
CIL had also been asked to look into the possibility of supplying 75-80 per cent of the assured quantity of coal in the second year under a relaxed penalty clause.
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