Govt to decide on disputes of pvt power cos too

CIL has modified clauses of supply disputes putting pvt sector at par with PSUs

The central government will have the final say in disputes arising out of the Fuel Supply Agreement (FSA) by both public and private sector power companies, according to sources.

Coal India has modified the clauses concerning supply disputes which put the private sector at par with PSUs, a source with a power utility told PTI.

According to the model FSA circulated in November, 2012, Coal India had the right to terminate the supply contract for private power sector consumers with a three-month notice in case there was no consensus during a joint review.

In cases of supply disputes with a PSU power unit, the matter had to be referred to the government for a final decision which would be binding on both the supplier and the consumer.

However, after the private sector power companies raised objection, the government decided to do away with the anomaly.

Union Coal Minister Sriprakash Jaiswal had recently said the model FSA would be the same for both PSUs and the private sector.

The supply contract in the model FSA is for 20 years but every five years either party can seek a review of the contract.

The latest modification incorporated in the model FSA said if both parties did not come to a mutually accepted resolution during the review, the matter would have to be referred to the government.

Until a decision, binding on both the parties, is arrived at, the contract will stay in force, according to the modified FSA.