Amid government’s declaration on issues relating to FSAs have been resolved, state-run Coal India (CIL) has so far signed fuel supply agreements (FSAs) with 35 power companies, a move indicating the improvement in the power situation.
The development followed Prime Minister’s Office (PMO) directing power producers to enter into FSAs with CIL within a month. “CIL after resolving the pending issues with power utilities have already signed 35 FSAs out of 114,” the Coal Ministry said in a statement adding that the remaining 79 fuel supply pacts are expected to be signed shortly.
PMO directive on December 17 came after its November deadline for FSAs was missed, amid differences over various issues including coal quality. However, private power companies have raised concerns over certain FSA clauses, which they claim are in favour of public sector undertakings (PSUs). Regarding this both Coal and Power ministers had said a joint decision had been taken to ensure that there would be no distinction on FSAs for public and private power companies.
Incidentally, the Ministry of Coal, said CIL achieved 95 per cent of its production output target during April-November, 2012 reflecting a steady supply of coal to producers.
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