Coal India inks 140 fuel supply pacts: coal secretary

New Delhi: The government today said Coal India (CIL) has so far entered into fuel supply pacts with about 140 power plants, amid the deadline for signing FSAs expiring last month.

“So far around 140 fuel supply agreements (FSAs) have been signed,” coal secretary SK Srivastava told reporters on the sidelines of a function organised by CII.

According to Coal India chairman, S Narsing Rao, some FSA’s are yet to be signed because of certain issues concerning those power plants.

Coal India has to sign 173 FSAs for a capacity of 78,000 MW.

The coal secretary further said the fuel supply pacts are being reviewed more or less on a daily basis.

“They (FSAs) are happening. It is being reviewed more or less on a daily basis. FSA are being signed. There will be some residual cases which will be primarily where some milestones further need to be achieved. We have very few residual cases,” he said.

On a recent communication to the Cabinet Secretariat by the coal ministry on FSAs he said, “We had informed the Cabinet Secretariat that we will try to adhere to all the guidelines and at the same time we would like that everything is done as per the norms which have been laid down for signing

of the FSAs.”

The secretary refused to comment on whether any fresh deadline has been set for signing of FSAs after the earlier deadline expired on 31 August.

Commenting on the current status of the fuel supply pacts Coal India chairman and managing director said, “As far as I am aware, I think 45 (FSAs) are yet to be signed as there are certain issues between us and them (power plants). There are three cases in WCL (Western Coalfields) where

we have a policy called cost plus. They (power plants) are not agreeing to cost plus, so there is a stalemate…One to two places, milestones has not been achieved.”

The Coal India board had on 3 August approved signing of FSAs for a capacity of 78,000 MW instead of 60,678 MW earlier, the source added.

A capacity of 60,678 MW was the projected requirement for 131 power plants commissioned, or to be commissioned by March, 2015.

PTI