December 11, 2012 / 18:40 IST
The government said some provisions to reduce operational issues related to dispute resolution, among others, have been made for power stations run by public sector companies. "Considering the fact that majority stakes in both CIL and PSU power stations are being controlled by the government, some provisions to reduce the operational issues in the clauses relating to dispute resolution, requirement of security deposit etc, have been made for the PSU/government power stations," Coal Ministry informed Parliament.
Also Read:CIL to develop 27 coal mines through outsourcingCIL, NTPC iron out differences, fuel pact likely by mid-JanMinister of State for Coal Pratik Prakashbapu Patil was responding in the Lok Sabha to a query on whether the government has received any representations from private power producers alleging that CIL is excessively favouring PSUs against them. In a written reply, the Minister said the Association of Power Producers has raised the matter that certain provisions of the model Fuel Supply Agreements (FSAs) are discriminatory. "However, there is no discrimination in the clauses concerning the key parameters of FSAs, viz. level of supply, tenure of FSA, requirement of power purchase agreement, trigger for compensation/incentives etc," the Minister said."Initiatives have been taken by Coal India (CIL) for addressing some of the issues raised by the private power producers by taking the same to the forthcoming board meeting of their company for consideration," Patil said. Last month, Private power producers had said that the discriminatory treatment by CIL to private power producers was giving undue benefits to state-owned companies."CIL's draft FSA is one-sided and is not in accordance with Presidential Directive," Association of Power Producers Director-General Ashok Khurana had said in a statement. APP said that the draft document still retains many of the provisions which the industry had opposed. CIL does not have the right to terminate FSAs in case of differences with power producers, the statement said. The option for arbitration regarding FSAs only open to government companies, it added. "CIL's discriminatory FSAs against principle of natural justice," it further added. 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!
