Coal India signs 161 fuel supply pacts with power plants

The Coal Ministry has said state-owned CIL has signed 161 fuel supply agreements (FSAs) for a capacity of 73,675 MW.

Following the CCEA (Cabinet Committee on Economic Affairs) directions for signing of the FSAs with the projects with 78,000 mw capacity, out of the 172 FSAs covering 134 LoAs (Letter of Assurances), as on date, CIL (Coal India Ltd ) has signed 161 FSAs for a capacity of 73, 675 MW, according to the latest official document.

The ministry further said there are 43 LoAs which were not covered within the 78,000 mw projects. Of this, 25 projects with a a capacity of 19,635 mw have already achieved their milestones. In nine cases, milestones are under verification or the matters are subjudice.

In the remaining 9 cases, one full LoA and one part LoA have been cancelled. However, in 4 full LoAs and one part LoA, CG (Commitment Guarantee) has been forfeited and matters are sub-judice.

In 3 LoAs, tapering linkage period has expired, the Ministry said. According to an official, the remaining fuel supply pacts could not be signed as some of power producers are yet to achieve milestones like forest clearances.

The coal ministry had earlier said CIL was yet to enter into fuel supply pacts with some of the power units as issues like change in ownership and extension of coal supplies were still being examined by it. 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 FSAs, which could not be met.

The second deadline was set for September, last year. The company, which accounts for 80 per cent of the domestic coal production, dispatched 353.83 million tonnes (MT) of coal to the power sector in FY2014. CIL produced 462 MT in the last fiscal. It has targeted an output of 507 MT in the current fiscal.