Govt to decide on FSA disputes of pvt power companies too
Feb 10 2013 , Kolkata
Coal IndiaBSE -1.41 % has modified the clauses concerning supply disputes which put the private sector at par with PSUs, a source with a power utility said.
According to the model FSA circulated in November, 2012, Coal India had the right to terminate the supply contract for private power sector consumers with a three-month notice in case there was no consensus during a joint review.
In cases of supply disputes with a PSU power unit, the matter had to be referred to the government for a final decision which would be binding on both the supplier and the consumer.
However, after the private sector power companies raised objection, the government decided to do away with the anomaly.
Union Coal Minister Sriprakash Jaiswal had recently said the model FSA would be the same for both PSUs and the private sector.
The supply contract in the model FSA is for 20 years but every five years either party can seek a review of the contract.
The latest modification incorporated in the model FSA said if both parties did not come to a mutually accepted resolution during the review, the matter would have to be referred to the government.
Until a decision, binding on both the parties, is arrived at, the contract will stay in force, according to the modified FSA.