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Web Exclusive | August 2013

CIL and its arms asked to sign FSAs by Aug 30

Unconfirmed media reports suggest that state-run miner Coal India (CIL) and its subsidiaries have been asked by the union coal ministry to sign fuel supply agreements (FSAs) with power producers by August 30.

On July 17, the ministry issued a presidential directive to CIL, directing it to sign FSAs for about 78,000 mw.

Further, it is learnt that the board of directors of the monopoly coal producer recently cleared the signing of FSAs for a power capacity of 78,000 mw instead of earlier 60,678 mw.

Previously, government asked CIL to sign FSAs for 60,678 mw capacity which was the projected requirement for 131 power plants commissioned or to be commissioned by March, 2015.

CIL has so far signed 82 FSAs of 34,793 mw capacities. These include 11 FSAs with NTPC and 5 FSAs with its joint ventures.

CIL has already signed fuel supply pacts with NTPC’s 16 power plants and joint ventures, while 11 more agreements with the power major and its JVs are being processed.

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