Power Ministry wants Coal India Ltd to sign pacts with firms for 4,000 MW

NEW DELHI: The Power Ministry has requested the Coal Ministry to ensure that Coal India Ltd signs fuel supply pacts with 10 power units of companies such as Abhijeet, Lanco and DVC for 4000 MW.

"Out of 78,000 MW, FSAs (Fuel Supply Agreements) for around 74,000 MW have been signed so far. FSAs for remaining 4,000 MW (for 10 units) may be signed immediately," according to a power ministry document.

Some of the power producers that are yet to enter into FSAs include Lanco Babandh Power Ltd, DVC's Chandrapura unit 8 and Abhijeet MADC Nagpur Energy (P) Ltd.

It added that although Lanco has achieved all the milestones for signing of the FSA have been achieved, MCL (Coal India subsidiary) is yet to sign the pact with it.

In the case of Chandrapura "Clarification needs to be issued by MoC (Ministry of Coal) that the unit is not linked to the coal block," it said.

The government had earlier stated that the timelines for signing of fuel supply pacts for power projects of 78,000 MW capacity should be met.

Power projects with 78,000 MW capacity have been approved for coal supplies by the Cabinet Committee on Economic Affairs (CCEA). For these projects FSAs would be signed for 172 units covering 134 Letter of Assurances (LoAs).

Two deadlines set for the signing of FSAs by CIL with the power producers could not be adhered to. The Coal Ministry had set the deadline of August 31, 2013 for signing of the FSAs, which could not be met. The second deadline was set for September last year.