48 power companies sign fuel pacts with Coal India

Only 48 power producers have inked fuel supply pacts with state-run Coal India so far, even as the second deadline set by the Prime Minister's Office (PMO) for signing these agreements ended last week.

"So far 48 power companies have signed fuel supply agreements (FSAs) with Coal India (CIL)," a Coal India official said.

Pulok Chatterjee, Principal Secretary to Prime Minister, had directed in a meeting on December 17 that the remaining FSAs should be signed within a month's time.

During the meeting the Principal Secretary was apprised that 33 out of the 87 companies have not signed the FSA, "with DVC (Damodar Valley Corporation) having done so more recently."

Mr Chatterjee was also apprised that the unilateral termination clause of the model FSA has been suitably amended to ensure that private companies are not discriminated vis-a-vis the public sector enterprises.

The PMO was also informed about the other changes in the FSA, including waiving off the six per cent additional security clause in the pact.

The PMO directive on December 17 came after its November deadline for FSAs was missed.     

Last month, after a meeting, Coal Minister Sriprakash Jaiswal and Power Minister Jyotiraditya Scindia had told reporters that most of the issues related to the contentious FSAs have been resolved.

"Most of the issues related to FSAs have been addressed. The FSAs (between power companies and CIL) are likely to be signed in a month's time," the Coal Minister had said.

Both Ministers said that a joint decision has been taken to ensure that there would be no "distinction" on FSAs for public and private power companies.

The country's largest power producer NTPC is among the companies that had raised concerns about quality of coal.

Earlier, the government had issued a Presidential Directive to CIL to sign FSAs with the power producers assuring them of at least 80 per cent of the committed coal delivery.