PMO directs power cos to ink FSAs by Nov 15

The PMO has directed power companies facing coal shortage to sign fuel supply agreements with Coal India by November 15. Supplementary FSAs will be signed after a consensus is built. Pooling of prices for coal imports will be discussed with Central Electricity Authority and Coal India.

Meanwhile, the coal ministry is currently going through a report submitted by Crisil on auctioning coal blocks. CNBC-TV18 has learnt that the coal ministry is expected to analyse the report by the end of the month.

Officials from the ministry will meet all the stakeholders before finalising the auction modalities. It is learnt that eight coal blocks are likely to be auctioned this year and the government has identified 54 coal blocks for allocation. The government has decided to make the IMG a permanent body to review coal blocks.

Coal India board has approved model FSA agreement which says that 65 percent of coal will be supplied through the domestic coal available and 15 percent on import cost plus basis.

Another issue which was discussed was of pooling of prices for imported coal to meet 80 percent trigger level. As of now the model agreement says 15 percent of the coal will be done through import cost plus basis.