‘Power firms to sign fuel pacts with Coal India in a month’
22 Dec 2012 6:18 AM IST
Seeking to put an end to the long tussle on fuel supplies, Coal Minister Sriprakash Jaiswal on Friday said pacts in this regard are likely to be signed within a month's time between power producers and Coal India (CIL). After a nearly two-hour meeting with Minister of State for Power Jyotiraditya Scindia, Jaiswal said that most of the issues have been resolved.
'Most of the issues related to FSAs (fuel supply agreements) have been addressed. The FSAs (between power companies and CIL) are likely to be signed in a month's time,' Jaiswal told reporters here. Noting that he had a 'freewheeling and positive discussion' with the Coal Minister, Scindia said the power companies would sign FSAs over the next month. The meeting was also attended by top officials of both power and coal ministries besides Coal India Chairman S Narsing Rao.
Scindia also said a joint policy on price pooling of coal is being worked out and was expected within ten days. 'We are likely to come out with a joint policy on coal price pooling over the next week or ten days. The Prime Minister's Office (PMO) on December 17 had set a one-month deadline for the public sector power companies, including NTPC, to sign fuel supply pacts with CIL failing which FSAs would be withdrawn.
Country's largest power producer NTPC is among the companies that have raised concerns about quality of coal. The PMO had in October asked power companies to sign the FSAs with Coal India by November-end even if they don't have binding pacts for sale of electricity. The meeting had been convened to sort out issues impeding signing of FSA between CIL and power producers. A total of 33 power units having a capacity of 9,671 MW have entered into modified FSAs with CIL so far. Earlier, the government had issued a Presidential Directive to CIL to sign FSAs with the power producers with assurance of at least 80 per cent of the committed coal delivery.
In September, the CIL board had approved the modified FSA without price-pooling with 65 per cent domestic coal and 15 per cent imported coal at cost plus basis. Cost-plus basis means cost of importing coal plus additional charges.
WILL SEE IF BLOCKS FOR AUCTION CAN GET IN-PRINCIPLE NOD: MOEF
The Ministry of Environment and Forest (MoEF) has assured the Coal Ministry that it would examine the issue of whether in-principle environment and forest clearances can be granted to coal blocks that are to be put up for auction. Senior officials of coal ministry on Friday met top officials of Environment Ministry in this regard here and discussed at length the issue of such clearances to mines that are to be auctioned.
‘During the meeting the issue of whether to grant in-principal environment and forest clearances to coal blocks to be put for auction was discussed. The Environment Ministry during the meeting assured the Coal Ministry that it would examine the issue,’ sources close to the development said.
The Coal Ministry had earlier expressed hopes that the differences with ministries like environment and power on the proposed bidding norms for auctioning of captive coal blocks would be resolved soon. The unresolved issues include whether to provide an ‘in principle’ environment clearance to the blocks on offer, arriving at a benchmark floor price and offering discounted prices to sectors like power, Coal Secretary S K Srivastava had said.
The Coal Secretary had said some ministries are in favour of putting up the blocks for auction with certain clearances like environment but that it may not be feasible due to procedural reasons. ‘We are in touch with MoEF on whether there can be a thing like conceptually providing in-principle approval, which I feel may not be possible considering the processes which are to be involved. We are to still arrive at a final view but few of the ministries have said that blocks have to be given with clearances,’ he said and adding this ‘requires lot of deliberations’.
'Most of the issues related to FSAs (fuel supply agreements) have been addressed. The FSAs (between power companies and CIL) are likely to be signed in a month's time,' Jaiswal told reporters here. Noting that he had a 'freewheeling and positive discussion' with the Coal Minister, Scindia said the power companies would sign FSAs over the next month. The meeting was also attended by top officials of both power and coal ministries besides Coal India Chairman S Narsing Rao.
Scindia also said a joint policy on price pooling of coal is being worked out and was expected within ten days. 'We are likely to come out with a joint policy on coal price pooling over the next week or ten days. The Prime Minister's Office (PMO) on December 17 had set a one-month deadline for the public sector power companies, including NTPC, to sign fuel supply pacts with CIL failing which FSAs would be withdrawn.
Country's largest power producer NTPC is among the companies that have raised concerns about quality of coal. The PMO had in October asked power companies to sign the FSAs with Coal India by November-end even if they don't have binding pacts for sale of electricity. The meeting had been convened to sort out issues impeding signing of FSA between CIL and power producers. A total of 33 power units having a capacity of 9,671 MW have entered into modified FSAs with CIL so far. Earlier, the government had issued a Presidential Directive to CIL to sign FSAs with the power producers with assurance of at least 80 per cent of the committed coal delivery.
In September, the CIL board had approved the modified FSA without price-pooling with 65 per cent domestic coal and 15 per cent imported coal at cost plus basis. Cost-plus basis means cost of importing coal plus additional charges.
WILL SEE IF BLOCKS FOR AUCTION CAN GET IN-PRINCIPLE NOD: MOEF
The Ministry of Environment and Forest (MoEF) has assured the Coal Ministry that it would examine the issue of whether in-principle environment and forest clearances can be granted to coal blocks that are to be put up for auction. Senior officials of coal ministry on Friday met top officials of Environment Ministry in this regard here and discussed at length the issue of such clearances to mines that are to be auctioned.
‘During the meeting the issue of whether to grant in-principal environment and forest clearances to coal blocks to be put for auction was discussed. The Environment Ministry during the meeting assured the Coal Ministry that it would examine the issue,’ sources close to the development said.
The Coal Ministry had earlier expressed hopes that the differences with ministries like environment and power on the proposed bidding norms for auctioning of captive coal blocks would be resolved soon. The unresolved issues include whether to provide an ‘in principle’ environment clearance to the blocks on offer, arriving at a benchmark floor price and offering discounted prices to sectors like power, Coal Secretary S K Srivastava had said.
The Coal Secretary had said some ministries are in favour of putting up the blocks for auction with certain clearances like environment but that it may not be feasible due to procedural reasons. ‘We are in touch with MoEF on whether there can be a thing like conceptually providing in-principle approval, which I feel may not be possible considering the processes which are to be involved. We are to still arrive at a final view but few of the ministries have said that blocks have to be given with clearances,’ he said and adding this ‘requires lot of deliberations’.
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