85 per cent fuel supply agreements have been signed: Jaiswal
12 Oct 2013 6:22 AM IST
The Coal Ministry on Friday said that around 85 per cent fuel supply pacts have been signed and the remaining would also be done once the technical glitches are addressed.
'Around 85 per cent of the FSAs (fuel supply agreements) have been signed and the remaining FSAs have not been signed due to technical reasons,' Coal Minister Sriprakash Jaiswal said.
'They (the remaining FSAs) will also be signed once those technical reasons are addressed,' he added.
He, however, refused to comment on whether the government has set a fresh deadline for signing of the pacts.
When asked what the government is doing about outstanding dues which the power firms owe to Coal India Limited, he said, 'FM (Finance Minister) has taken this very seriously and has asked them (power firms) to soon disburse outstanding dues.'
Amid continuous delays, the Cabinet Committee on Investment (CCI) had earlier said that timelines for signing of fuel supply pacts for power projects of 78,000 MW capacity should be met.
Two deadlines set recently for signing of the fuel supply agreements by Coal India (CIL) with the power producers could not be adhered to. CCI had even directed the Power Minister to review the progress of the power projects on a daily basis with the secretaries of both Power and Coal Ministries.
Coal India has to sign 173 FSAs with power companies for a total capacity of 78,000 MW as directed by the Coal Ministry.
The Coal Ministry had earlier set the deadline of August 31 for signing of the FSAs which could not be met. Further, the second deadline of September 6 was also not achieved.
The CIL board had on 3 August approved signing of FSAs for a capacity of 78,000 MW instead of 60,678 MW earlier.
Meanwhile, the ministry also said that it is upto the board of CIL to take a call on whether or not to buy back shares from the government.
'It will be decided by Coal India Limited board as we don't have any role in it,' Coal Minister Sriprakash Jaiswal told reporters here.
The statement follows the government stating last month that at present it is not considering any proposal of Coal India buying back shares from the government.
When asked when the company's board will take a call on buyback, he said 'Coal India board does not act on our directions.'
He further said that the disinvestment in the coal PSU will take place only after Cabinet's approval. However, he refused to give a timeline on further stake sale in the company.
Media reports had earlier said the Finance Ministry wanted CIL to buy back 5 per cent of its shares if the company was not able to proceed with its public issue due to poor market conditions.
There was a proposal to sell five per cent shares in Coal India through offer for sale route. The government now holds 90 per cent stake in the company.
The Disinvestment Department had pared a plan to sell 10 per cent stake in CIL to placate employee unions.
‘Coal block auctions for private firms likely in Dec’
New Delhi: The government on Friday expressed hope that the auction of coal blocks to be allocated to the private firms would begin by December.
The statement comes close on the heels of the Cabinet approving the methodology for auctioning coal blocks.
‘We are hopeful that the (auction of coal blocks) will begin in December,’ Coal Minister Sriprakash Jaiswal told reporters here on the sidelines of a coal summit organised by CII. He also said that it is taking time as the coal ministry wants explored blocks to be allocated to the private firms.
‘Everything is ready. We want that coal blocks should be explored, therefore it is taking time,’ the minister said.
Last month, the Cabinet had approved the methodology for auctioning coal blocks, providing for upfront and production-linked payments and benchmarking of coal sale prices.
'Around 85 per cent of the FSAs (fuel supply agreements) have been signed and the remaining FSAs have not been signed due to technical reasons,' Coal Minister Sriprakash Jaiswal said.
'They (the remaining FSAs) will also be signed once those technical reasons are addressed,' he added.
He, however, refused to comment on whether the government has set a fresh deadline for signing of the pacts.
When asked what the government is doing about outstanding dues which the power firms owe to Coal India Limited, he said, 'FM (Finance Minister) has taken this very seriously and has asked them (power firms) to soon disburse outstanding dues.'
Amid continuous delays, the Cabinet Committee on Investment (CCI) had earlier said that timelines for signing of fuel supply pacts for power projects of 78,000 MW capacity should be met.
Two deadlines set recently for signing of the fuel supply agreements by Coal India (CIL) with the power producers could not be adhered to. CCI had even directed the Power Minister to review the progress of the power projects on a daily basis with the secretaries of both Power and Coal Ministries.
Coal India has to sign 173 FSAs with power companies for a total capacity of 78,000 MW as directed by the Coal Ministry.
The Coal Ministry had earlier set the deadline of August 31 for signing of the FSAs which could not be met. Further, the second deadline of September 6 was also not achieved.
The CIL board had on 3 August approved signing of FSAs for a capacity of 78,000 MW instead of 60,678 MW earlier.
Meanwhile, the ministry also said that it is upto the board of CIL to take a call on whether or not to buy back shares from the government.
'It will be decided by Coal India Limited board as we don't have any role in it,' Coal Minister Sriprakash Jaiswal told reporters here.
The statement follows the government stating last month that at present it is not considering any proposal of Coal India buying back shares from the government.
When asked when the company's board will take a call on buyback, he said 'Coal India board does not act on our directions.'
He further said that the disinvestment in the coal PSU will take place only after Cabinet's approval. However, he refused to give a timeline on further stake sale in the company.
Media reports had earlier said the Finance Ministry wanted CIL to buy back 5 per cent of its shares if the company was not able to proceed with its public issue due to poor market conditions.
There was a proposal to sell five per cent shares in Coal India through offer for sale route. The government now holds 90 per cent stake in the company.
The Disinvestment Department had pared a plan to sell 10 per cent stake in CIL to placate employee unions.
‘Coal block auctions for private firms likely in Dec’
New Delhi: The government on Friday expressed hope that the auction of coal blocks to be allocated to the private firms would begin by December.
The statement comes close on the heels of the Cabinet approving the methodology for auctioning coal blocks.
‘We are hopeful that the (auction of coal blocks) will begin in December,’ Coal Minister Sriprakash Jaiswal told reporters here on the sidelines of a coal summit organised by CII. He also said that it is taking time as the coal ministry wants explored blocks to be allocated to the private firms.
‘Everything is ready. We want that coal blocks should be explored, therefore it is taking time,’ the minister said.
Last month, the Cabinet had approved the methodology for auctioning coal blocks, providing for upfront and production-linked payments and benchmarking of coal sale prices.
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