Coal firms should take advance action to renew FSAs in time

The panel said the decision was taken to make sure that there are no interruptions in fuel supply to power plants

An inter-ministerial panel has decided that coal companies, including CIL, should take prior action to renew the fuel supply pacts in time to make sure that there are no interruptions in fuel supply to power plants.

The Standing Linkage Committee (SLC) "decided that coal companies should take advance action to renew the FSAs (Fuel Supply Agreements) in time to ensure that there were no disruptions in supplies," an official source said.

The decision was taken at the meeting of SLC under the Chairmanship of Additional Secretary, coal.

"Any procedural issue outstanding should be settled in the meanwhile and FSA renewed. CIL (Coal India Ltd) and all coal companies will take appropriate action in this regard," the source added.

Amid continuous delays, state-owned CIL has so far signed 160 fuel supply pacts with power units.

The Cabinet Committee on Investment ( CCI) had earlier stated that the timelines for signing of fuel supply pacts for power projects of 78,000 MW capacity should be met.

Two deadlines set for the signing of FSAs by CIL with the power producers could not be adhered to. The Coal Ministry had set the deadline of August 31, 2013 for signing of the FSAs, which could not be met. The second deadline had been set for September, last year.