CIL may sign fuel pacts with 50 power firms including NTPC
Coal India is expected to enter into fuel supply agreements (FSAs) with as many as 50 firms, including NTPC, Reliance Power and DVC, for a total capacity of 28,000 MW, sources said.
April 10, 2012 / 10:56 IST
Coal India is expected to enter into fuel supply agreements (FSAs) with as many as 50 firms, including NTPC, Reliance Power and DVC, for a total capacity of 28,000 MW, sources said.
The proposed move follows issuance of a Presidential directive to Coal India (CIL) for supplying a minimum assured quantity of fuel to power producers."CIL will enter into FSAs with 50 power companies, which include NTPC and DVC. As far as private firms are concerned the PSU may ink fuel pact for (Reliance Power's) Rosa plant among others," sources told PTI.The government on April 3 issued a Presidential directive to the Maharatna PSU to sign fuel supply agreements (FSAs) with the power producers assuring them of at least 80 per cent of the committed coal delivery.The directive came in the wake of Coal India failing to meet the deadline of March 31, set by the Prime Minister's Office for CIL to enter into FSAs with power producers for minimum assured supply.While a Reliance Power spokesperson, when contacted, denied to comment on the expected FSA, an NTPC official said his company is expected to sign the pact with the coal producer for a total capacity of 4,300 MW which will include some of power units like Sipat, Jhajjar, Dadri and Simhadri.A DVC official said that the FSAs has to be signed with its "four thermal power plants." The units are 1000 MW Durgapur Steel Thermal Plant, 1,000 MW Mejia Thermal Power Station, 500 MW Koderma Thermal Power Station and 500-MW Chandrapura Thermal Power Station.The PMO, after meeting with power firms honchos includingRatan Tata, Anil Ambani and Gautam Adani to take stock of how the fuel shortages were hitting the sector, had directed CIL to ink FSAs with power plants that have been commissioned on or before December 31, 2011.According to sources, some of the leading power firms like Adani, Sterlite, Lanco and India Bulls which have major capacity addition plans are likely to benefit from the FSAs.In FY10-15 period, Adani is expected to scale up its capacity to 2,566 MW, Sterlite to 3,720 MW, India Bulls to 3,780 MW and Lanco to 5,040 MW. 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!
