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| CIL, power cos to miss April deadline for fuel supply pact |
| Press Trust Of India / New Delhi Apr 28, 2009, 14:52 IST |
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The long-term fuel supply pact between the country's largest coal producer, Coal India, and power utilities led by navratna firm NTPC is set to miss the April-30 deadline on account of procedural delays.
In a meeting between Coal India Ltd (CIL) and NTPC officials here last evening, the draft of Fuel Supply Agreement (FSA) was fine-tuned and would now be sent to the boards of the two companies for approval, an official said.
The process of signing the FSA is likely to be completed in a month's time, he said, adding the pact between the two companies would act as a benchmark for other units to follow.
When contacted, Coal India Chairman Partha S Bhattacharyya said, "All the issues (pertaining to the FSA) between both the parties have been worked out and the pact is likely to be signed around May 20."
Earlier, CIL had set April 30 as the deadline for 72 power utilities, including NTPC, to conclude the FSA, which is a long-term supply-pact between the coal producer and consumers.
The pact has, however, been delayed by almost a year now due to differences over fixing of a "trigger level", the minimum assured level of coal supply and offtakes, failing which both parties attract penalty.
After a series of meetings between CIL and NTPC, the trigger level has been agreed at 90 per cent of the assured supply of 307 million tonnes (MT) to the power units which have come up before March 31, 2009.
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