Coal India Yet To Sign Fuel Supply Pacts with 12 Power Units

State-owned Coal India (CIL) is yet to enter into fuel supply pacts with 12 power units as issues like change in ownership and extension of coal supplies are still being examined by the government.

"Out of this 78,000 MW capacity as on date CIL has signed 160 FSAs (Fuel Supply Agreements) for a capacity of 73,075 MW.

"In the remaining 12 cases, some issues related to change of ownership, extension of coal supplies, beyond the period admissible under Tapering Linkage Policy, etc., are involved," said the minutes of meeting dated July 24 of Standing Linkage Committee on Power.

Tapering linkage is short-term fuel linkage provided to those consumers who have been allocated captive coal blocks but which could not be developed on time.

The minutes, further said that such issues are being considered separately.

As many as 177 LoAs (Letter of Assurances) were issued by Coal India and its subsidiaries for the power projects to be commissioned in the 11th and 12th Five Year Plan.

"These LoAs cover a capacity of about 1,08,000 MW projects. Out of these CCEA (Cabinet Committee on Economic Affairs) has directed for coal supplies in respect of projects with 78,000 MW capacity," it said.

Accordingly, a Presidential directive was issued to CIL. For these projects FSAs were to be signed for 172 units covering 134 LoAs.

Two deadlines set for the signing of FSAs by CIL with the power producers could not be adhered to. The government had set the deadline of August 31, 2013 for signing of the FSAs, which could not be met. The second deadline was set for September, last year.