Top executives of private power companies such as Tata Power, Reliance, Lanco and Torrent Power met Union power minister Veerappa Moily on Friday to seek his intervention to ensure a speedy resolution to pending fuel issues relating to the sector.

A huge generation capacity is facing the prospect of being stranded due to shortage of fuel ? both coal and natural gas. Developers feel the resolution of fuel issues would help boost sagging investors’ confidence in the sector.

Specifically, developers pushed for increasing coal quantity from 80% to 100% of the requirement for signing power purchase agreements (PPAs) in the meeting with the minister.

They also pushed for dispensing with the requirement of the PPA for signing of fuel supply agreements (FSAs) with Coal India. The companies argued that they were unable to tie up loans for projects as bankers were insisting on FSAs. The delegation of power producers was led by Ashok Khurana, director-general, Association of Power Producers.

Prime minister Manmohan Singh had assured an early resolution of all power sector issues in January when Ratan Tata and Anil Ambani had met him. The power firms have also requested for the release of fuel linkage for projects scheduled to come in the last year of the current 12th Year Plan and during the next Plan. The developers also sought a change in the existing Mega Power Policy to do away with the conditionality that PPA should be signed for minimum 85% power supply to avail the benefits of the policy. Khurana said: ?Resolution of fuel issues would help maximise generation from existing assets and avoid possibility of generating stations being stranded.?

The ministry asked the officers concerned to resolve the issues in a time-bound manner,? Khurana added.

Govt plans biz index to boost sentiment

Armed with a two-pronged strategy to improve the overall business climate of the country and help create a fair-playing field for stakeholders, the Centre is planning to come out with a business development index based on economic parameters. Corporate affairs minister Veerappa Moily said the index will be based on robust economic parameters that will reflect the true strength of corporate sector. A credible agency would be entrusted with the work of developing the index.