APP says fuel supply pact favours PSUs; govt denies charge
"Discriminatory treatment by CIL (Coal India Ltd) towards private power producers is giving undue benefits to state- owned companies," Ashok Khurana, Director-General of Association of Power Producers (APP), said in a statement.
"CIL's draft fuel supply agreement is one-sided and is not in accordance with Presidential Directive," APP said.
It further alleged that the draft document retains many of the provisions the industry had opposed in the past.
CIL should not have the right to terminate the fuel pact in case of differences with power producers, the statement said.
The option for arbitration regarding the pact is only open to government companies, it added.
"CIL's discriminatory FSA (fuel supply agreement) is against principle of natural justice," it further added.
When asked about by APP allegations, Power Secretary P Uma Shankar said fuel supply agreement is the same for public and private power producers.
He also said the Power Ministry has communicated its concerns over quality of fuel to be supplied to thermal power projects to the Coal Ministry.
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