Power, coal ministries resolve issues, FSAs to be inked in a month

“We have taken a joint decision that there will be no distinction. Modalities related to the issues will be decided by the companies concerned,” power minister Jyotiraditya Madhavrao Scindia said after meeting the coal minister.

The power ministry had earlier protested the CIL practice of offering relatively unfavourable terms to private companies in fuel supply agreements ( FSAs).

The FSA proposed by CIL offered favourable terms to PSU power projects in case of termination of agreement, provision of security deposit, suspension of coal supplies and settlement of disputes. The issue were first flagged by FE quoting the letter written by Scindia to the coal minister.

After nearly two-hour long meeting with power minister, coal minister Sriprakash Jaiswal said most of the issues have been resolved. "Most of the issues related to FSAs (fuel supply agreements) have been addressed. The FSAs (between power companies and CIL) are likely to be signed in a month's time," Jaiswal told reporters.

Noting that he had a "freewheeling and positive discussion" with the coal minister, Scindia said the power companies would sign FSAs over the next month.

The meeting was also attended by top officials of both power and coal ministries besides Coal India Chairman S Narsing Rao.

Scindia also said a joint policy on price pooling of coal is being worked out and was expected

... contd.