Web Exclusive | August 2013
Govt asks CIL to sign coal supply pacts for 78,000 mw
The Coal India (CIL) and its subsidiaries have been directed to enter into fuel supply pacts with the power firms for a capacity of 78,000 mw by this month-end. The Union Coal Ministry had issued a presidential directive to CIL directing it to sign FSAs for about 78,000 mw. Earlier, CIL was asked 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, say media reports.
According to reports, 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. On July 26, the Coal Ministry had said that CIL has 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.
Over quality issues of the dry-fuel supplied to it, NTPC had refused to enter into FSAs with CIL and had stopped payment to Coal India subsidiary, Eastern Coalfields. On its side CIL had temporarily stopped supply of fuel to NTPC.