Govt to prepare list of power cos for coal on priority basis

Govt had said last month that power companies are likely to ink fuel supply pacts with Coal India in a month's time

Ministries of power and coal would prepare a list of electricity producers to whom coal will be allocated on priority basis, according to an official document.

"Requests have been received from IPPs (Independent Power Producers) which are outside the 60,000 MW list for signing FSAs (Fuel Supply Agreements)...It was agreed  that a prioritised list of these companies would be jointly prepared by MoC (Ministry of Coal) and MoP (Ministry of Power)," a Coal Ministry document said.

The government had said last month that power companies are likely to ink fuel supply pacts with Coal India (CIL) in a month's time.

The official document further said that the power plants of these IPPs were expected to be ready to commence generation before March, 2013, adding that these firms could not get statutory clearances of their captive coal blocks on time or could not get LoAs (Letter of Assurances) for various reasons.

"Ministry of Coal would then carry out a scenario analysis indicating the impact of offering normal or tapering linkage/ signing FSAs with all sub-set of these companies (bases on priority) on the quantum of imports and the pooled prices," the document said.

So far, 35 power firms have signed fuel supply pacts with Coal India (CIL).

Coal Minister Sriprakash Jaiswal and Power Minister Jyotiraditya Scindia had last month said that most of the issues related to the contentious Fuel Supply Agreements (FSAs) have been resolved.

The development soon followed the Prime Minister's Office (PMO) directing power producers to enter into FSAs with CIL within a month. PMO directive on December 17 came after its November deadline for FSAs was missed, amid differences over various issues, including coal quality.

Noting that discussions were freewheeling and positive, Scindia had said, "We are not sitting on the opposite side of the table, we are sitting on the same side of the table... We will be ready to sign the FSAs over the next month".

Both Ministers said that a joint decision has been taken to ensure that there would be no "distinction" on FSAs for public and private power companies.

Private power companies have raised concerns over certain FSA clauses, which they claim are in favour of PSUs.

The companies which so far signed FSAs are Bajaj Energy, Rosa Power, Mundra Adani and Sterlite Energy among others.