With the November 30 deadline set by the Prime Minister’s Office (PMO) to wrap up fuel supply agreements (FSAs) drawing near, the Power Ministry has directed NTPC to sign the FSA with Coal India Limited (CIL) for supply of coal for its power plants.

The Power Minister, in a recent note to NTPC, asked it to sign the FSA with CIL at the earliest and not later than the November 30 deadline. The PMO had, last month, asked power companies, including NTPC, to sign fuel supply pacts by the month-end even if they don’t have binding pacts for sale of electricity.

During the meeting at PMO, which was chaired by the Principal Secretary to the Prime Minister, Pulok Chatterjee, it was decided that FSAs could be signed with power companies having long-term and medium-term power purchase agreements (PPAs) based on confirmation from the Power Ministry that it was benefiting the consumers. “Medium-term and long-term PPAs will continue, subject to confirmation from the Power Ministry that it is benefiting consumers,” a senior government official said.

Even those power producers, who at present have not signed a PPA with any electricity distribution company, can sign the FSA but they will be required to produce the PPAs before lifting coal. So far, 30 power firms, including private power companies have entered into pacts with CIL. The coal company is likely to enter into pacts with 48 power units having a capacity of less than 30,000 MW.

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