Deadlock over fuel pacts to end in a fortnight: Jaiswal

New Delhi: Coal Minister Sriprakash Jaiswal today said a breakthrough in the deadlock between coal and power ministries over fuel supply agreements (FSAs) would happpen in a fortnight, paving way for power major NTPC and others to ink supply pacts with Coal India.

“A breakthrough will happen in 10-15 days…issue (FSA) would be resolved between Coal and Power Ministries,” Jaiswal told television channel CNBC-TV18, admitting there were problems leading to an impasse.[caption id=“attachment_353057” align=“alignleft” width=“380” caption=“Sripraksh Jaiswal. Image courtesy PIB”]  [/caption]

NTPC and many power companies have refused to ink FSAs with Coal India Ltd (CIL), disagreeing with introduction of new clauses, which has resulted in signing of only about 50 percent of the pacts so far.

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“My Ministry is concerned to address the issue and if required amendments (in the FSA clauses) would be made… NTPC and some other PSUs want to revert back to earlier penalty clauses,” Jaiswal told CNBC-TV18.

The minimum penalty clause in the FSAs is a bone of contention between coal and power ministries, as the power firms are opposed to penalty clause which states that CIL is not liable to pay penalty for the first three years of the pact even if there is supply shortfall.

The government, in April, had issued a directive to CIL to commit itself to a minimum 80 per cent of fuel supply to power producers, failing which it would attract penalty.

Asked about irregularities in coal blocks allotment, Jaiswal reiterated that the same was done in transparent manner in consultation with the state governments.

However, he added that in case CBI detects irregularities against firms, “Not only they will be barred from future allocations of coal blocks but stringent action as per Act would be taken against them.”

The CBI is investigating alleged irregularities in the utilisation of coal blocks allocated to private companies between 2006 and 2009. The government earlier had come under criticism after a leaked CAG draft pointed out heavy losses to the exchequer on account of blocks allocation without auction.

Jaiswal said his ministry was cooperating with the CBI in the case and as far as fresh allocation was concerned, mines for auction have been identified.

Stressing there was a need to augment coal production in view of country’s growth he said, “The Prime Minister is concerned about the growth of the country” and has convened a meeting tomorrow to ensure enhanced production of coal.

Jaiswal exuded confidence that CIL will record a 7-8 percent growth this year.

Also, he said, disinvestment required for Neyveli Lignite’s listing on the bourses may happen this year whereby the government would offload about 3 percent of the equity in it as over 6 per cent has already been offloaded.

PTI