CoalMin to review progress of fuel supply pacts by month-end

Ministry had earlier asked CIL, its subsidiaries to enter into FSAs with power firms for a capacity of 78,000 MW by end of August

Coal Ministry has called a meeting by month-end to review the progress of fuel supply pacts signed with power firms for a capacity of 78,000 MW.

"The Coal Ministry has called a meeting on August 30 to review the progress of signing of fuel supply pacts," an official said.

To be chaired by Coal Secretary S K Srivasatava, the meeting will be attended by Coal India (CIL) Chairman and Managing Director (CMD) S Narsing Rao and CMDs of all the subsidiaries of CIL, among others, the official added.

The Coal Ministry had earlier asked CIL and its subsidiaries to enter into fuel supply agreements (FSAs) with the power firms for a capacity of 78,000 MW by end of August.

CIL board had on August 3 approved signing of FSAs for a capacity of 78,000 MW instead of earlier capacity of 60,678 MW, a source close to the development said.

The Coal Ministry had on July 17 issued a presidential directive to the maharatna firm, directing it to sign FSAs for about 78,000 MW.

Earlier, CIL was directed to sign FSAs for 60,678 MW capacity which was the projected requirement for 131 power plants commissioned or to be commissioned by March 2015.

CIL has so far signed 82 FSAs of 34,793 MW capacities. These include 11 FSAs with NTPC and 5 with its joint ventures.

NTPC had earlier refused to enter into FSAs with CIL over issues of coal quality supplied to it and had stopped payment to CIL subsidiary, Eastern Coalfields Ltd.

Retorting, the world's largest coal miner had temporarily stopped supply of fuel to NTPC. The issue was resolved following government intervention.