Only 48 power producers have inked fuel supply pacts with state-run Coal India so far, even as the second deadline set by the Prime Minister’s Office (PMO) for signing these agreements ended last week.
“So far 48 power companies have signed fuel supply agreements (FSAs) with Coal India (CIL),” a Coal India official said.
The Principal Secretary to Prime Minister Pulok Chatterjee had in a meeting on December 17 directed that the remaining FSAs should be signed within a month’s time.
During the meeting the Principal Secretary was apprised that 33 out of the 87 companies have not signed the FSA, “with DVC (Damodar Valley Corporation) having done so more recently“.
Chatterjee was also apprised that the unilateral termination clause of the model FSA has been suitably amended to ensure that private companies are not discriminated vis-a-vis the public sector enterprises.
The PMO was also informed about the other changes in the FSA, including waiving off the six per cent additional security clause in the pact.
The PMO directive on December 17 came after its November deadline for FSAs was missed.
Last month, after a meeting, Coal Minister Sriprakash Jaiswal and Power Minister Jyotiraditya Scindia had told reporters that most of the issues related to the contentious FSAs have been resolved.
Country’s largest power producer NTPC is among the companies that had raised concerns about quality of coal.