CIL denies wrongdoing in signing of supply pacts

Coal India Limited (CIL) has denied any wrongdoing in the signing of supply pacts with power firms. The clarification followed a media report alleging CIL had signed pacts with 11 companies, despite these not qualifying for the process.

CIL said its subsidiaries didn’t deviate from norms in signing fuel supply agreements (FSAs) with 11 power firms. It added FSAs had officially been executed with only three of the 11 companies — Maithon Power, Rosa Power Supply Company and Adhunik Power and Natural Resource. “While eight firms have already achieved their milestones, FSAs are yet to be inked with them. However, memoranda of understanding have been signed with two of the eight firms awaiting formal signing of FSAs,” CIL said.

These include a unit of NTPC’s Dadri power plant by NTPC and a unit of Damodar Valley Corporation’s Mejia power plant.

CIL added its subsidiaries hadn’t signed FSAs with six power companies---Dhariwal Infrastructure, SKS Power Generation Chhattisgarh, NRI Power & Steel, Maruti Clean Coal and Power, Neeraj Power and Bara TPS of Uttar Pradesh Power Corporation.

“Coal companies will diligently examine and adhere to all the provisions and terms of reference and norms of the letter of assurance before signing the FSAs,” CIL said.

Earlier, a media report had said in a report to the coal ministry, CIL’s chief vigilance officer stated supply pacts for 5,935 Mw had either been inked or cleared for signing despite “deficiencies in documents”.