Penalise Coal India for supply delay: power ministry

New Delhi: Amid fuel supply issues, the Power Ministry has suggested that if power companies are penalised for delays in commercial operation of its units, the same should also apply for CIL for not supplying coal as per commitment.

Such a recommendation from the Power Ministry comes at a time when not all power companies have signed fuel supply agreement (FSA) with Coal India on account of objections raised by the power firms on some of the clauses of pacts.

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“MoP (Ministry of Power) is of the view that if power developers are to be penalised for not achieving CoD (Date of Commercial Operation), the same should be applicable for CIL (Coal India Limited) for not supplying coal as per LoA (Letter of Assurance),” a Coal Ministry source said quoting an official document.

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The Power Ministry has, therefore, recommended that for the projects for 12th plan period, dates for commercial operation of power plants “may not be insisted upon and no penalty be imposed for delays in CoD,” the official document said.

In a meeting earlier this year a panel under the Chairmanship of Additional Secretary in the Coal Ministry had asked Central Electricity Authority (CEA) to inform, project wise, the Coal Ministry about the details of the revised CoD.

If the CoD, the panel had said, is not achieved within a year after the intimated dates, it would lead to termination of fuel supply agreement and supply of coal would be stopped immediately, the document said.

“CEA/MoP were required to intimate the dates within a stipulated period. This was, however, not done,” it said. The Power Ministry also stated that power projects of more than 9,000 MW which have been commissioned were reportedly not being supplied fuel.

“MoP has separately informed… that none of the projects included in their list is likely to slip out of 12th plan as of now but more that 9,000 MW projects which have been commissioned upto June 30 were reportedly not being supplied coal,” the document said.

“MoP vide their letter dated October 22…informed that CoD need not be insisted upon,” it said. As of now only 33 of the total 87 power companies have entered into FSA with CIL.

PTI