Power News We love to talk!
While Coal India Ltd (CIL) has signed at least 10 fuel supply agreements (FSAs) with power companies, concerns of the country’s largest power producer, NTPC, are yet to be settled.
NTPC, also owned by the Central government, had refused to sign new FSAs, saying there was no supply guarantee. It was expected to approach the power ministry to intervene. When asked whether it had requested the ministry, Chairman Arup Roy Choudhury said, “We are taking up the issue directly with CIL.”
Clauses like the penalty of only 0.01 per cent of the value of shortfall if CIL fails to deliver 80 per cent of the committed coal had invited ire from power firms. The current penalty is 10 per cent if the firm fails to meet the trigger level.
CIL initiated the process of signing FSA, after a Presidential decree directed the Kolkata-based firm to abide by the earlier instruction of the Prime Minister and sign FSAs with companies that had set up plants by the end of 2011.
However, a top NTPC official said, “It is not possible for us to sign FSAs with the present clauses. How can we sign two sets of FSAs for the same power plants? Moreover, the present penalty clause is not guaranteeing any fuel security for us.”
NTPC had demanded an amicable solution to imports, too. “NTPC wants us to deliver imported coal at the site, which is not possible,” a top CIL official said.
Meanwhile, a top official in the CIL’s marketing department said the company had signed 10 FSAs till now, while 38 were in pipeline. “This includes three units of PSUs and seven of private firms,” he said.
It includes companies like Rajasthan Rajya Vidyut Utpadan Nigam Ltd, Lanco Anpara Power and Bajaj Hindustan,” he said.
- Coal India may rope in national lab for certifying supply to NTPC Read more
- Piyush Goyal: India to lose Rs 25 lakh cr over 25 years on imported coal Read more
- High coking coal prices could stay -Teck Resources executive Read more
- Coal India's subsidiary plans to auction two blocks for underground coal gasification Read more
- Bangladesh not looking at importing coal from India at present: energy minister Read more
- 6.5 lakh people give up LPG subsidy Read more
- Madhya Pradesh joins power club Read more
- CIL confident of tying up fuel supply pacts by Aug 31 deadline Read more
- Govt clears stake sale in Coal India, ONGC, NHPC Read more
- CERC approves tariffs for PPCLs 1,371 MW Pragati-III TPP for 2009-14 Read more