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May 17, 2012

Coal Ministry asked CIL to consider Power Producers request of revised minimum supply level and other changes…

Burning Coal

As said by Mr. Sripraksh Jaiswal, Coal Minister in Lok Sabha, The Coal Ministry has asked Coal India ltd to consider National Thermal Power Corporation’s request on revision of minimum fuel supply level.

 

CIL has received a request from NTPC to consider signing of the FSA for the additional units of their existing power stations on the same parameters as done with their existing plants, but with revised trigger point on disincentive as per the government orders.

 

NTPC is not willing to sign the FSAs proposed by CIL without the changes in the minimum fuel supply level as well as other changes suggested by power producers.

 

As said by the NTPC Chairman and MD, Mr. Arup Roy Choudhury:

I will only sign the FSA with change in the trigger point, because that is the direction given by the government, why should I accept 10 or 15 more changes.

NTPC is among the many power generators who have refused to ink the fuel supply agreement (FSA) with CIL.

Due to acute fuel scarcity hitting power generation, the government has directed CIL to sign FSAs with power companies, with the minimum supply commitment of 80 per cent of the total contract.

With persisting uncertainty over FSA, Power Minister Sushilkumar Shinde had written to the Prime Minister's Office (PMO) seeking intervention on the issue.


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