Coal Min asks CIL to consider NTPC's request on FSA

Revised fuel pact to have new minimum fuel suppy level for new units of its existing plants

The government today said it has asked Coal India Ltd (CIL) to consider NTPC's request for signing the fuel supply pact, with the revised minimum fuel supply level, for new units of its existing plants.

"CIL has been asked to examine the reference received from NTPC and the representation of Association of Power Producers for taking appropriate action," Coal Minister Sriprakash Jaiswal said in a reply to the Lok Sabha.

"CIL has received a request from NTPC to consider signing of the FSA for the additional units of their existing power stations on the same parameters as done with their existing plants, but with revised trigger point on disincentive as per the government orders," Jaiswal said.

The ministry has also received a representation from the power producers association, seeking changes in the new model fuel supply agreement, he added.

On Monday, power producer NTPC had said that it would accept only the revised minimum fuel supply level and not other changes suggested for signing the new pact with Coal India.

NTPC is among the many power generators who have refused to ink the fuel supply agreement (FSA) with CIL.

"I will only sign the FSA with change in the trigger point, because that is the direction given by the government, why should I accept 10 or 15 more changes," NTPC Chairman and Managing Director Arup Roy Choudhury had said.

Amid acute fuel scarcity hitting power generation, the government has directed CIL to sign FSAs with power companies, with the minimum supply commitment of 80% of the total contract.

"The second point is that I have a station with five or six generation units. FSAs are already there for five units and the six unit is getting fuel through MoU. Why should there be a separate FSA (for the sixth unit)? May be, the sixth unit can have a different trigger level," Choudhury had said.

With persisting uncertainty over FSA, Power Minister Sushilkumar Shinde had written to the Prime Minister's Office (PMO) seeking intervention on the issue.

Shinde's communication came after the Central Electricity Authority (CEA) held discussions with various power generators on May 9 to gather their views on the FSA problem.

The Power Minister has requested the PMO to instruct the Coal Ministry and CIL to sign FSAs within a month based on the 2009 format.