New Delhi: Nothing concrete has emerged from the meeting of the coal and power ministries which met to deliberate on the new clauses framed by CIL in the fuel supply pact that were objected to by some power companies.
State-owned Coal India Ltd has stated that the clauses it introduced in the new model fuel supply agreement (FSA) are aimed at protecting the PSU's interest.
The meeting followed the Coal Ministry asking CIL to examine the new FSA clauses that have been objected to by some power companies. The power ministry had also raised their concerns with the coal ministry.
"The officials from both the ministries met yesterday and deliberated on the clauses of the fuel supply pact which are being objected to by the power companies. However, nothing concrete came out of the meeting which was chaired by coal secretary Alok Perti," said an official who attended the meeting.
The Power Ministry delegation was led by Joint Secretary with Power Ministry I C P Keshari, the official said.
A couple of days ago, the Coal Ministry had asked CIL to examine issues, including changes in penalty clause, raised by the power producers regarding the model fuel supply agreement.
The move followed NTPC and many power companies refusing to ink fuel supply pacts with CIL, disagreeing with the introduction of the new clauses.
In a letter to the Coal Ministry dated May 18, the Power Ministry flagged concerns raised by power producers regarding the model Fuel Supply Agreement.
The Power Ministry also requested the Coal Ministry to ensure that CIL inks fuel pacts with power companies within a month based on 2009 model FSA, by only changing the minimum
supply level to 80 percent.
Following the communication, the Coal Ministry wrote to CIL seeking comments on the FSA-related issues.
Among others, the new FSA states that CIL is not liable to pay penalty for the first three years (from the date of signing the pact) even if there is supply shortfall. This as well as clauses related to 'force majeure' and compensation for stone content in the fuel, are being opposed by power companies.
Apprehending shortfalls in coal supply to power producers, CIL informed the Coal Ministry a few days back that fuel supply pact clauses being opposed by a few companies were aimed at safeguarding the interest of the PSU firm.


Latest News from Business News Desk