State-owned Coal India Ltd (CIL) has entered into fuel supply agreements (FSAs) with ten power firms for supplying a minimum assured quantity of fuel to power producers as per the government directive.
"It's ten on last count...everyday they are doing," Zohra Chatterjee, Additional Secretary, Ministry of Coal, told reporters on the sidelines of a CII event in New Delhi. Chatterjee was also handling the additional charge of CIL CMD till recently.
The coal producer has signed agreements with companies which include Lanco Anpara Power and Bajaj Hindustan.
Earlier this month, the government issued a Presidential directive to Coal India to sign fuel supply agreements (FSAs) with the power producers assuring them of at least 80 per cent of the committed coal delivery.
The directive has been given to the PSU, as it did not meet the deadline of March 31, set by the Prime Minister's Office for CIL to enter into agreements with power producers which were facing fuel crunch.
CIL is to supply fuel to 48 power producers as per the directive, which obligates it to commit a minimum of 80 per cent of fuel supply to power producers, failing which would attract a penalty.
CIL had earlier said that it was difficult to give a time frame for signing all of the pacts as the company was signing pacts as and when the power companies were coming forward.
The company has already sent out the model FSA format to power firms. The model includes clauses like suspension of supply to power firms if they were found diverting the fuel for any purpose other than the specified end-use plant.
The model format also includes clauses like 80 per cent trigger level and penalty of 0.01 per cent in case of failure to adhere to it.
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