30 FSAs signed till Sept 2012: Power Minister to Lok Sabha

Amid uproar over foreign direct investment (FDI) in retail, Power Minister Jyotiraditya Madhavrao Scindia told Lok Sabha that there was a generation loss of 11.63 billion units in FY12 on coal shortage.

He further said that 30 fuel supply agreements (FSAs) have been signed till September 2012.

Coal India is likely to enter into pacts with 48 power units having a capacity of less than 30,000 MW. The Prime Minister Office had convened a meeting last month to sort out issues relating to signing of FSA between Coal India and power producers.

It was decided during the meeting, that FSAs can be signed with power companies having long-term and medium-term Power Purchase Agreements (PPAs) based on confirmation from Power Ministry that it is benefiting the consumers.

The Power Ministry had last month said issues related to signing of fuel supply agreements with Coal India would be sorted out soon and no coal-based power project would face fuel shortage in the 12th Five-Year Plan (2012-2017).

In September, the CIL board had approved the modified FSA without price-pooling with 65 percent domestic coal and 15 percent imported coal at cost plus basis.

He also said that Coal India has been asked to enhance coal production.  According to him, six hydroelectric projects held up due to environment clearance.

Also read: Power Min, CEA need to consult utilities for FSA

(With inputs from PTI)