You are here: Home » Companies » News
Business Standard

No separate FSAs for private and public players, says Jaiswal

BS Reporter  |  Kolkata 

With both the power and coal ministries’ vowing to break the logjam on fuel supply agreements (FSA), Union Coal Minister Sriprakash Jaiswal said on Saturday that there would only be a single draft fuel supply agreement for both public and private power companies, contrary to the revised FSA draft cleared by the Coal India board in September.

“There will be no separate FSAs. There will only be one single FSA for both private and public parties. However, we would not change the draft... power have agreed to sign it with in a month,” Jaiswal said, on the sidelines of a Srei Foundation event.

The board of CIL had cleared the revised draft FSAs in September. One of the major issues that was raised by the critics against the CIL draft FSAs was the “discrimination” between public and private power firms.

CIL had come out with separate draft FSAs for public and private firms, where public firms had the advantage as far as security deposit and arbitration clauses were concerned. “The major difference was that government parties had the advantage of getting the security deposit refunded after a point of time and had the right to go for arbitration,” said a top CIL official.

When asked about the government move, Ashok Khurana, director-general of Association of Power Producers (APP) said, “We welcome the decision as there will be a level playing field between the private and public parties now. Now, the government may remove those discriminatory clauses and will come out with a fresh FSA, with minor changes.”

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, December 23 2012. 00:57 IST
RECOMMENDED FOR YOU
.