Kolkata-based Maharatna major Coal India Ltd (CIL) has put the onus of signing of fuel supply agreements by November end on power companies, in order to meet a directive by the Prime Minister’s Office.
Early this month, the PMO had directed the state-run coal major to sign FSAs with power plants that have long- and medium-term sale arrangements by November-end.
“We are well equipped to meet this deadline, but the onus is on power companies. Even after issuing revised FSA draft, we were able to sign agreements with only 30 companies till now, while about 120 are in line,” said a top CIL official close to the development.
After a meeting at the PMO, the firm’s chairman and managing director S Narsing Rao had reportedly said that it will be able to sign atleast 50 FSAs, with plants that were commissioned since March 2012.
While CIL revised penalty slabs in the current FSA structure, doing away with moratorium. The board has also approved cost price model for signing of FSAs, which will provide imported coal at actual cost.
CIL had earlier agreed for a level of penalty ranging from 1.5% to 40% on failure to meet supply commitments. It came after protests from various corners over its decision to go for a minor penalty of 0.01%.
