CIL has signed 157 fuel supply agreements...

 

State-owned Coal India Ltd (CIL) has signed 157 fuel supply agreements (FSAs) so far for a capacity of 71,145 MW, the Parliament was informed today.

"A Presidential Directive has been issued to Coal India Ltd (CIL)... Accordingly, 157 FSAs have been signed so far for a capacity of 71,145 MW," said Minister of State for Coal Pratik Prakashbapu Patil in a written reply to the Rajya Sabha.

The Minister said as per the New Coal Distribution Policy (NCDP) 2007, CIL has to supply coal to such power plants with which it has entered into fuel supply agreements.

The government had recently approved coal supplies to thermal power plants which are commissioned/to be commissioned by March 31, 2015.

Replying to a question on power projects that have been stuck due to unavailability of coal, Patil said Coal India has been dispatching more than 90 per cent of the quantity committed under fuel FSA/memorandum of understanding (MoU).

"During the last three years, despatches to power utilities have been 91 per cent, 91 per cent and 92 per cent of the targets in 2010-11, 2011-12 and 2012-13, respectively.

Coal dispatches were 87 per cent in the current year up to October, 2013," the Minister said.

As per the coal stock report of Central Electricity Authority (CEA) as on Nov 28, 2013, coal stock position of Thermal power plants (TPPs) was 16.03 million tonnes (MT) as against 9.19 MT during last year.

"However, there are a few power plants with source of fuel other than linked coal from CIL, which may be impacted because of non-availability of inadequate availability of coal.

Information regarding such plants is being sought for from CEA," he added.

Amid continuous delays, the Cabinet Committee on Investment had earlier said that timelines for signing of fuel supply pacts for power projects of 78,000 MW capacity should be met.

Two deadlines set for signing of the fuel supply agreements by Coal India (CIL) with the power producers could not be adhered to. The Coal Ministry had set the deadline of August 31 for signing of the FSAs, which could not be met.

 

Source

Read More...

Coal India signs fuel supply pacts for 71,500 MW capacity...

 

State-owned Coal India has signed fuel supply agreements (FSAs) for capacity of 71,500 MW, a top company official said. "(Out of the 78,000 MW), 71,500 MW has been signed," Coal India Chairman and Managing Director S Narsing Rao told reporters here.

Amid continuous delays, the Cabinet Committee on Investment (CCI) had earlier said that timelines for signing of fuel supply pacts for power projects of 78,000 MW capacity should be met. Two deadlines set for signing of the fuel supply agreements by Coal India (CIL) with the power producers could not be adhered to. The Coal Ministry had set the deadline of August 31 for signing of the FSAs, which could not be met.

Further, the second deadline of September 6 was also not achieved. CIL has recently tweaked the provision pertaining to the settlement of disputes in the model fuel supply agreements for the existing and new state-owned power utilities.

According to the new FSA, Coal India will supply 65 per cent of the contracted amount from domestic sources and another 15 per cent through imports with pass-on pricing model.

Source

Read More...

NTPC to lock in long-term coal supply..

 

NTPC, India’s biggest power producer, said it would sign a pact to ensure long-term supply of imported coal beginning 2018 as it looks to lock in commitments when globally prices are low and local supplies, mostly from Coal India, unlikely to meet the growing demand.

While NTPC has been importing a part of its requirement of coal for short periods the current initiative is for a long-term pact where supplies come at a little premium, an NTPC official said.

The power producer today floated an expression of interest for entering into a coal supply agreement for supply of up to 12 million tonne (mt) a year of imported coal on long-term basis ranging from 10-15 years.

“NTPC has massive ongoing capacity addition plans with around 20,000 mw projects under construction. The company is contemplating setting up some of their new power project capacity based on 100% imported coal,” the document said adding the first consignment is required not before 2018.

NTPC’s coal imports have been going up fast; this year it is projected to be 16 mt, more than 70% more than 9 mt imported in fiscal 2013.

The announcement comes on the day when the inauguration of transportation of imported coal via inland waterways.

Source

Read More...

CIL tweaks provision of model fuel supply pacts on disputes...

 

State-owned Coal India Limited (CIL) has tweaked the provision pertaining to the settlement of disputes in the model fuel supply agreements (FSA) for the existing and new State-owned power utilities.

“(There are) modifications in the provisions of model FSAs applicable for the existing and new power utilities (for SEB (State Electricity Board) and state Gencos,” Coal India said in a letter.

CIL further said in the letter that the provision for ‘settlement of disputes’ under the model FSA for both existing and new plants was in accordance with the mechanism of permanent machinery of arbitrators (PMA) issued by the Department of Public Enterprises.

“Recently, the Department of Heavy Industries & Public Enterprises modified the dispute resolution provision, replacing the earlier OM (Office Memorandum),” it said.

“Since earlier OM dated January 22, 2004, has been superseded by the new OM dated June 12, 2013, the FSA provisions...for the model applicable to existing as well as new government/state power utilities, including the corresponding tapering FSA model, will stand modified accordingly,” CIL said.

Coal India Chairman S. Narsing Rao had recently said the PSU has signed FSA for 70,400 MW.

Amid continuous delays, the Cabinet Committee on Investment (CCI) had earlier said that timelines for signing of fuel supply pacts for power projects of 78,000 MW capacity should be met.

Two deadlines set for signing of the fuel supply agreements by CIL with the power producers could not be adhered to.

Source

Read More...

Coal Ministry issued revised coal distribution policy...

 

The existing Coal Distribution Policy has been modified by the Coal Ministry to clear the legal hurdles being faced by Coal India Limited (CIL) and to reduce its coal supply commitment from 100% to 80% in new Fuel Supply Agreements (FSA) as well as import of coal to meet the shortfall of power production.

 

Some of the features of the revised Coal Distribution Policy are:

• Minimum supply commitment of 80% of coal requirement by power plants while signing fresh fuel supply agreements for 78,000 MW capacity that may be commissioned during April 2009- March 2015.
• During the remaining four years of the current 12th Five-Year Plan, the coal PSU has to supply 65-75% coal from domestic sources while the balance fuel requirement can be met with imports.
• CIL will supply imported coal on cost plus basis. However, the power companies have choice to import coal on their own.
• CIL will supply 65% domestic coal during 2013-14 and 2014-15, 67% in 2015-16 and 75% in the terminal year of the Plan.

Coal Ministry has directed CIL to sign FSAs for 78,000 MW capacity out of which so far FSAs for around 34,793 MW capacity.

 

---

Additional Reading...

• http://www.financialexpress.com/news/coal-distribution-policy-amended-to-reduce-cil-s-supply-commitment/1147188/2#
• http://www.thenews.com.pk/Todays-News-5-192568-Policy-for-gas,-power-supply-to-industrial-sector:-CM

---

Read More...

CIL & NTPC signs Fuel supply agreements for 16 Power projects...

 

Coal India Limited (CIL) and National Thermal Power Corporation Limited (NTPC) have recently signed Fuel Supply Agreements (FSA) for 16 Coal based Power Projects of NTPC.

With this the score of FSAs signed by CIL has reached to 82 for around 34,793 MW Capacity. The 16 FSAs signed with NTPC includes 11 with NTPC itself and 5 with Joint Ventures (JV) of NTPC.

Further, according to sources 6 FSAs for 4480 MW capacity with NTPC and 5 FSAs for JVs of NTPC are under the process of signing.

Earlier, the Coal Ministry has directed CIL to sing FSA sor around 78,000 MW capacity to ensure committed supply of coal to power sector.

In addition to the above mentioned FSAs, some more FSAs are likely to be signed soon as 5 projects of state sector and 11 projects of private sector have achieved the requisite milestones for conversion of Letter of Assurance (LoA) TO FSA.

7 cases are awaiting declaration of Commercial Operation Date (CoD) by Central Electricity Authority (CEA) while in five cases milestones are under verification.

According to the Coal Ministry, these efforts and constant monitoring will result in signing of more FSAs during the coming weeks, which will help to improve the power generation in the country.

 

____________________________________________________________________________________________________________________________________________

Additional Reading...

http://economictimes.indiatimes.com/news/news-by-industry/energy/power/coal-india-ntpc-sign-fuel-supply-pacts-for-16-power-plants/articleshow/21369034.cms

____________________________________________________________________________________________________________________________________________

Read More...