In a respite for the fuel supply problems, Coal India (CIL) has agreed to enter into fuel supply agreements (FSAs) with power companies even if they do not have power purchase agreements (PPAs) in place. However, the power companies have to furnish PPA at the time when fuel supply from CIL started.
Union Power Minister Veerappa Moily confirmed that the Southern Grid would be connected to the National Grid by December 2013, which will ensure in providing a uniform flow of electricity across India. He also underlined that budget support for the Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) scheme in the XII Plan has been approved by the Planning Commission as the centre had planned to add 18,000 MW during the current financial year, the estimated requirement of budget support is about Rs 49,730 crore. This is in conjunction with its efforts to set up a total of 80,000 MW capacity in the current Plan period ending March 2017.
The ministry also reaffirmed the commissioning of the first 660 MW unit of Sasan UMPP in Madhya Pradesh, which is on schedule and is expected to commence by the beginning of next year.
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