35 power producers have signed fuel supply pacts with Coal India: Govt

The coal ministry today said 35 power firms have so far entered into fuel supply agreements (FSAs)with Coal India Limited (CIL), amid the government stating that most issues relating to such pacts have been resolved. The statement follows the government announcing last month that power companies are likely to ink fuel supply pacts with CIL in a month's time.

"CIL after resolving the pending issues with power utilities have already signed 35 FSAs out of 114," the coal ministry said in a statement.

The ministry also expressed hopes that the remaining 79 fuel supply pacts would be signed shortly. "The balance (FSAs) are expected to be completed shortly," the statement said.

On December 21, after a nearly two-hour long meeting, Coal Minister Sriprakash Jaiswal and Power Minister Jyotiraditya Scindia had told reporters that most issues related to the contentious FSAs have been resolved.

The development followed the Prime Minister's Office directing power producers to enter into FSAs with CIL within a month.

The PMO directive on December 17 came after its November deadline for FSAs was missed, amid differences over various issues including coal quality.

Noting that discussion were freewheeling and positive, Scindia had said: "We are not sitting on the opposite side of the table, we are sitting on the same side of the table... We will be ready to sign the FSAs over the next month."

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

Private power companies have raised concerns over certain FSA clauses, which they claim are in favour of public sector undertakings (PSUs). Some of the power units which have signed FSA are Bajaj Energy, Rosa Power, Mundra Adani and Sterlite Energy, among others.