According to the Economic Times, this directive will benefit to the as much as 8,800 MW of electricity generation capacity which are getting commissioned during the first three months of this year.
According to a statement of Power Ministry:
"The Ministry of Coal has issued a directive to coal companies to supply coal to power plants commissioned till March 31, 2012 as well as those to be commissioned during 2012-13 through the MOU route as the FSAs are getting delayed. With this directive, the commissioned plants would be able to generate power without facing disruption of coal supply.”
As per the release, the quantity of coal to be supplied to these power plants would be decided in consultation with the Central Electricity Authority (CEA) till FSAs for these projects are signed.
Most of the power companies have expressed concerns on certain clauses, such as those related to penalty, in the revised FSA mooted by Coal India Ltd.
CEA held discussion with major power producers to gather their views on the FSA.
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