CIL yet to sign 15 fuel supply pacts with power plants

Tags: CIL, Fuel, Power
State-owned Coal India Ltd (CIL) is yet to enter into fuel supply pacts with 15 power units as certain issues related to them, such as change in ownership and extension of supplies, are being considered separately.

The Cabinet Committee on Investment (CCI) had earlier stated that the timelines for signing of fuel supply pacts for power projects of 78,000 MW capacity should be met.

"157 FSAs (Fuel Supply Agreements) have been signed so far. In the remaining 15 cases some issues related to the change in ownership, extension of coal supplies beyond the period admissible under the tapering linkage policy, etc are involved," said an official.

These issues are being considered separately, the official added.

Power projects with 78,000 MW capacity have been approved for coal supplies by the Cabinet Committee on Economic Affairs (CCEA). For these projects FSAs would be signed for 172 units covering 134 Letter of Assurances (LoAs), the official said.

"(Overall) 177 LoAs (Letter of Assurances) were issued by CIL and its subsidiaries for power projects to be commissioned during the 11th and the 12th Five year Plan. These LoAs cover a capacity of about 1,08,000 MW," the official added.

Two deadlines set for the signing of FSAs by CIL with the power producers could not be adhered to. The Coal Ministry had set the deadline of August 31, 2013 for signing of the FSAs, which could not be met. The second deadline was set for September.


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