Power ministry to seek removal of coal FSA

Power producers are unlikely to sign the FSAs as they exist now said sources in the power ministry to CNBC-TV18.

CNBC-TV18 also learns that power companies find certain clauses in FSA arbitrary. The new draft makes Coal India virtually unaccountable due to negligible penalty in case they renege on their promise. The power companies want FSAs at pre-2009 level. Pre-2009 FSAs had 50-90% supply trigger, 10% penalty. Power ministry plans to seek removal of coal FSA's. CEA will prepare report on FSA issues.
Power ministry and power companies, however, remain hopeful that the differences could be ironed out in a meeting with Chief Electricity Authority which is underway.