Single FSA for PSUs and private coal consumers
There would a single "Fuel Supply Agreement" (FSA) draft for both public and private sector power companies seeking coal from Coal India Ltd.
December 24, 2012 / 09:16 IST
There would a single "Fuel Supply Agreement" (FSA) draft for both public and private sector power companies seeking coal from Coal India Ltd. "There will be only one single FSA for both private and public parties," Union Coal Minister Sriprakash Jaiswal said on the sidelines of a two-day World Confluence on Human, Power and Spirituality conference.
However,minister did not elaborate. Coal India officials said at present, there were minor differences in the draft clauses for public and private power companies such as on security deposit and provision for arbitration clauses. The draft for PSUs allowed arbitration in case of dispute and there were some relaxations on security deposit. Jaiswal expected the FSAs would be signed by the power companies in a month's time.NTPC, a major consumer had said recently it would sign FSAs after meeting the Coal India chief. Private companies in the past had accused Coal India of drafting the power supply document in favour of public power companies. The minister, however, said that there was no final decision so far on price pooling of coal.Price-pooling was opposed by power companies, mainly state owned entities, and existing players. Speaking about the proposed coal regulator, Jaiswal said that the Group of Ministers would meet in the next few days to finalise the draft of the coal regulator bill.Also ReadEnvironment clearance issue for coal blocks to be examinedIndia to surpass US as coal consumer in 5 yrs: IEA 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!
