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Web Exclusive | January 2013

Consensus elusive on FSA between NTPC, CIL

Media reports suggest that still the consensus on the the model fuel supply agreement (FSA) to be signed between National Thermal Power Corporation (NTPC) and Coal India (CIL) has not evolved.

It is learnt that NTPC has again raised objections to some of the clauses of the model FSA. NTPC said it did not discuss the issue at its board meeting last month and said it was awaiting clarity on the model pact.

It is worth mentioning here that the government last month had said most of the issues relating to FSAs have been resolved and power companies are likely to ink fuel supply pacts with CIL in a month's time.

However, CIL had intimated to NTPC about the changes with regard to model FSA soon after its board meeting in December.

According to one media report, the state-run power producer wants further changes in the model FSA as it found some clauses objectionable. But it is not known which clauses the NTPC finds to be objectionable.

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