Coal, power ministries in talks to resolve FSA issues

A continuous dialogue is going on between Ministries of Coal and Power to resolve a few clauses of the model fuel supply pact, Parliament was informed today.

"A continuous dialogue has been going on between the Ministry of Coal and Ministry of Power for a resolution on some of the clauses of the model FSA (Fuel Supply Agreement), Minister of State for Coal Partik Prakashbapu Patil said in a written reply to Lok Sabha.

The statement comes close on the heels the deadline, set by the Prime Minister's Office (PMO) for signing of fuel supply pacts, expiring last month.

The PMO in October had asked power companies, including NTPC, to sign fuel supply pacts with Coal India (CIL) by November-end even if they don't have binding pacts for sale of electricity.

Pulok Chatterji, Principal Secretary to the Prime Minister, had convened a meeting to sort out issues impeding the signing of FSAs between CIL and power producers.

A total of 33 power units having a capacity of 9,671 MW have entered into modified fuel supply agreement (FSA) with Coal India (CIL) as on November 26.

Earlier, the government issued a Presidential directive to CIL to sign FSAs with the power producers assuring them of at least 80% of the committed coal delivery.

In September, the CIL board had approved the modified FSA without price-pooling with 65% domestic coal and 15% imported coal at cost plus basis.

Cost-plus basis means cost of importing coal plus additional charges.