Coal minister Sriprakash Jaiswal says that 18 fuel supply agreements or FSAs have been signed with power companies so far. He added, he will ask Coal India to rethink the penalty clause, and that the ministry has sought legal opinion on the upcoming block allocation. He further said that a GoM will be formed in next few days to decide on forming a coal regulator, reports CNBC-TV18.
Coal India was issued a directive to sign the FSA at 80%, and the final decision on penalty clause was left to the Coal India board. Coal India board has reduced the penalty clause due to which NTPC and private sector companies have complained. However, around 45% FSAs have been signed, said Jaiswal.