Coal India's draft FSA is one-sided, say private power producers

Private power producers are crying foul over discriminatory treatment by CIL in the draft fuel supply agreement.

“Discriminatory treatment by CIL to private power producers is giving undue benefits to State-owned companies,” Association of Power Producers Director-General Ashok Khurana said in a statement.

[caption id=“attachment_516588” align=“alignleft” width=“380”] CIL does not have the right to terminate FSAs in case of differences with power producers, the statement said. Reuters[/caption]

“CIL’s draft FSA is one-sided and is not in accordance with Presidential Directive,” he said. APP said that the draft document still retains many of the provisions which the industry had opposed.

CIL does not have the right to terminate FSAs in case of differences with power producers, the statement said.

The option for arbitration regarding FSAs only open to government companies, it added. “CIL’s discriminatory FSAs against principle of natural justice,” it further added.

PTI