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Coal India has been directed by the Coal Ministry to supply fuel to units which were commissioned after December 2011 and do not have fuel supply agreements (FSAs). This comes as a huge relief to fuel-starved coal-fired power units with a combined capacity of 8,156 MW.
The companies that commissioned power units during January-March 2012 and were waiting for fuel supplies include Bajaj Energy, Tata Power, Adani Power, NTPC and Reliance Power, among others.
Decision on quantities
In a statement issued here on Thursday, the Power Ministry said that concerned over the delays in the signing of FSAs between coal companies and power developers, it had taken up the issue with the Coal Ministry. Following this, the Ministry has issued a directive to coal companies to supply fuel to power plants commissioned till March 31, 2012, as well as those to be commissioned during 2012-13 through the memorandum of understating route, as the FSAs were getting delayed.
Coal for these power plants will be supplied in quantities to be decided in consultation with the Central Electricity Authority (CEA) till the FSAs for these plants are signed.
Coal India is in the process of signing the FSAs. The dispute arose when Coal India threatened to stop supplies to units that do not have a FSA and are buying coal on the basis of MoUs.
Power producers sought the intervention of the nodal Ministry and the Prime Minister's Office to prevent a situation where the entire 8,156 MW commissioned after December 31 2011 would be grounded for non-availability of fuel. Mr Ashok Khurana, Director-General, Association of Power Producers, said: “Coal India has no rights not to honour the MoUs. These are on the lines of FSAs. An MoU had to be signed because FSAs were not in line on what it should be.”
However, Coal India said it has not stopped supplies to any buyer. When asked about its indication to cut down supply to units without FSAs, Coal India Chairman, Mr S. Narsing Rao, said: “I do not think we have taken any view on them (on supplies on the basis of MoUs).”
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