Fuel supply pacts for 18 power projects to be signed by Sept 6

Projects include Adani Power Maharashtra Ltd, GMR Kamalanga Energy Ltd, Lanco Babandh Power, Talwandi Power and Haldia Energy

The government today said state- owned Coal India will enter into fuel supply pacts for 18 power projects worth Rs 83,772 crore by September 6.

 

"Eighteen fuel supply agreements (FSAs) will be signed by September 6...In the 18 projects the approximate investment is about Rs 83,772 crore of which disbursal is Rs 30,313 crore," Finance Minister P Chidambaram told reporters here.

 

Earlier the deadline for signing of FSAs was August 31.

 

According to an official, the projects include Adani Power Maharashtra Ltd, GMR Kamalanga Energy Ltd, Lanco Babandh Power, Talwandi Power, Haldia Energy, Abhijeet MADC Nagpur Energy and Lanco Amarkantak.

 

The Coal Ministry has earlier asked Coal India (CIL) and its subsidiaries to enter into fuel supply pacts with the power firms for a capacity of 78,000 MW by month-end.

 

CIL board had on August 3 approved signing of FSAs for a capacity of 78,000 MW instead of earlier 60,678 MW.

 

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 around 100 FSAs.

 

On July 26, the coal ministry had said that CIL has signed fuel supply pacts with NTPC.

 

NTPC had refused to enter into FSAs with CIL over quality issues of the dry-fuel supplied to it and had stopped payment to Coal India subsidiary, Eastern Coalfields Ltd.

 

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