Ministry asks CIL to consider NTPC's FSA request
17 May 2012 3:28 AM GMT
The government on Wednesday said it has asked Coal India Ltd (CIL) to consider NTPC's request for signing the fuel supply pact, with the revised minimum fuel supply level, for new units of its existing plants.
'CIL has been asked to examine the reference received from NTPC and the representation of Association of Power Producers for taking appropriate action,' coal minister Sriprakash Jaiswal said in a reply to the Lok Sabha.
'CIL has received a request from NTPC to consider signing of the FSA for the additional units of their existing power stations on the same parameters as done with their existing plants, but with revised trigger point on disincentive as per the government orders,' Jaiswal said.
The ministry has also received a representation from the power producers association, seeking changes in the new model fuel supply agreement, he added.
On Monday, power producer NTPC had said that it would accept only the revised minimum fuel supply level and not other changes suggested for signing the new pact with Coal India.
NTPC is among the many power generators who have refused to ink the fuel supply agreement (FSA) with CIL. 'I will only sign the FSA with change in the trigger point, because that is the direction given by the government, why should I accept 10 or 15 more changes,' NTPC chairman and managing director Arup Roy Choudhury had said.
Amid acute fuel scarcity hitting power generation, the government has directed CIL to sign FSAs with power companies, with the minimum supply commitment of 80 per cent of the total contract.
'The second point is that I have a station with five or six generation units. FSAs are already there for five units and the six unit is getting fuel through MoU. Why should there be a separate FSA (for the sixth unit)? May be, the sixth unit can have a different trigger level,' Choudhury had said.
With persisting uncertainty over FSA, power minister Sushilkumar Shinde had written to the Prime Minister's Office (PMO) seeking intervention on the issue.
CIL SIGNS FUEL SUPPLY PACTS
Coal India (CIL) has so far entered into pacts with 14 power plants for the supply of fossil fuel, while some have refused to sign it due to their objections on some of the clauses of the model fuel supply agreement. 'Till now 14 power units have entered into fuel supply pact with CIL. The last unit with which the PSU has signed FSA is CESC,' a source close to the development said.
The development follows power ministry seeking the intervention of the Prime Minister's Office to resolve issues related to CIL's new fuel supply agreement.
'CIL has been asked to examine the reference received from NTPC and the representation of Association of Power Producers for taking appropriate action,' coal minister Sriprakash Jaiswal said in a reply to the Lok Sabha.
'CIL has received a request from NTPC to consider signing of the FSA for the additional units of their existing power stations on the same parameters as done with their existing plants, but with revised trigger point on disincentive as per the government orders,' Jaiswal said.
The ministry has also received a representation from the power producers association, seeking changes in the new model fuel supply agreement, he added.
On Monday, power producer NTPC had said that it would accept only the revised minimum fuel supply level and not other changes suggested for signing the new pact with Coal India.
NTPC is among the many power generators who have refused to ink the fuel supply agreement (FSA) with CIL. 'I will only sign the FSA with change in the trigger point, because that is the direction given by the government, why should I accept 10 or 15 more changes,' NTPC chairman and managing director Arup Roy Choudhury had said.
Amid acute fuel scarcity hitting power generation, the government has directed CIL to sign FSAs with power companies, with the minimum supply commitment of 80 per cent of the total contract.
'The second point is that I have a station with five or six generation units. FSAs are already there for five units and the six unit is getting fuel through MoU. Why should there be a separate FSA (for the sixth unit)? May be, the sixth unit can have a different trigger level,' Choudhury had said.
With persisting uncertainty over FSA, power minister Sushilkumar Shinde had written to the Prime Minister's Office (PMO) seeking intervention on the issue.
CIL SIGNS FUEL SUPPLY PACTS
Coal India (CIL) has so far entered into pacts with 14 power plants for the supply of fossil fuel, while some have refused to sign it due to their objections on some of the clauses of the model fuel supply agreement. 'Till now 14 power units have entered into fuel supply pact with CIL. The last unit with which the PSU has signed FSA is CESC,' a source close to the development said.
The development follows power ministry seeking the intervention of the Prime Minister's Office to resolve issues related to CIL's new fuel supply agreement.
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