Panel on coal linkages to meet on Sep 13

Around 27 power units are facing problems in signing FSA with CIL

The inter-ministerial panel on linkages will meet next week to deliberate on coal supplies to the power sector, amid the power producers facing fuel supply issues.

"The meeting of the Standing Linkage Committee (Long-Term) for power to review the status of achievement of milestones...In the power sector and other items related to existing coal linkages will be held on September 13," a Coal Ministry memorandum said.

The 13-member panel, chaired by Additional Secretary Coal, has representatives from ministries like Power, Railways and Shipping.

The meeting comes at a time when some of the power plants are yet to enter into fuel supply agreements (FSAs) with Coal India (CIL) in the wake of various issues, including non-achievement of milestones.

The milestones, in general, include acquisition of land, signing of Power Purchasing Agreements, among others.

Around 27 power units are facing problems in signing FSA with state-owned Coal India (CIL) due to the absence of letters of assurance, ownership issues and non-achievement of milestones, a source close to the development had said.

Citing examples, the source had added, "While Talwandi Power is facing problem in change of ownership, R K M Powergen has not achieved milestones."

CIL has to sign 173 FSAs with power companies for a total capacity of 78,000 MW.

The CIL board had on August 3 approved signing of FSAs for a capacity of 78,000 MW instead of 60,678 MW earlier, the source added. The capacity of 60,678 MW was the projected requirement for 131 power plants commissioned or to be commissioned by March 2015.

CIL has so far signed around 130 FSAs, including with NTPC, which had earlier raised quality issues on the dry-fuel supplied to it.