Sign fuel supply pacts with CIL in a month: PMO to power cos
19 Dec 2012 5:09 AM IST
The Prime Minister's Office (PMO) on Monday set a one-month deadline for public sector power companies, including NTPC, to sign fuel supply pacts with Coal India Ltd (CIL), failing which fuel supply agreements (FSAs) would be withdrawn.
'The PMO has asked the Power Ministry to direct power PSUs to sign fuel supply agreements (FSAs) with CIL within a month from today (December 17), else fuel supply pacts would be withdrawn,' said sources.
The direction from the PMO came during a meeting held under the Chairmanship of Principal Secretary to the Prime Minister Pulok Chatterjee. The meeting was attended by Coal Secretary S K Srivastava, Power Secretary P Uma Shankar and Coal India Ltd Chairman and Managing Director (CMD) S Narsing Rao among others. The country's largest power producer, NTPC, is among the companies that have raised concerns about the quality of coal.
Recently, NTPC Chairman and Managing Director (CMD) Arup Roy Choudhury said, 'The quality of coal that we have received from Coal India is poor and we have informed the Power Ministry about that.'
The PMO had in October asked power companies to sign the fuel supply pacts with Coal India Ltd by November-end even if they do not have binding pacts for sale of electricity.
The PMO had convened a meeting to sort out issues impeding the signing of FSAs between CIL and power producers.
A total of 33 power units having a total capacity of 9,671 MW have entered into modified fuel supply agreements (FSAs) with Coal India Ltd (CIL) so far.
Earlier, the government issued a Presidential Directive to CIL to sign FSAs with the power producers, assuring them of at least 80 per cent of the committed coal delivery. In September the CIL board had approved the modified FSAs 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.
'The PMO has asked the Power Ministry to direct power PSUs to sign fuel supply agreements (FSAs) with CIL within a month from today (December 17), else fuel supply pacts would be withdrawn,' said sources.
The direction from the PMO came during a meeting held under the Chairmanship of Principal Secretary to the Prime Minister Pulok Chatterjee. The meeting was attended by Coal Secretary S K Srivastava, Power Secretary P Uma Shankar and Coal India Ltd Chairman and Managing Director (CMD) S Narsing Rao among others. The country's largest power producer, NTPC, is among the companies that have raised concerns about the quality of coal.
Recently, NTPC Chairman and Managing Director (CMD) Arup Roy Choudhury said, 'The quality of coal that we have received from Coal India is poor and we have informed the Power Ministry about that.'
The PMO had in October asked power companies to sign the fuel supply pacts with Coal India Ltd by November-end even if they do not have binding pacts for sale of electricity.
The PMO had convened a meeting to sort out issues impeding the signing of FSAs between CIL and power producers.
A total of 33 power units having a total capacity of 9,671 MW have entered into modified fuel supply agreements (FSAs) with Coal India Ltd (CIL) so far.
Earlier, the government issued a Presidential Directive to CIL to sign FSAs with the power producers, assuring them of at least 80 per cent of the committed coal delivery. In September the CIL board had approved the modified FSAs 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.
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