Industry

Coal supplies: Power Ministry seeks PMO's intervention

With no end in sight to the continuing tussle between Coal India Limited (CIL) and power producers over the fuel supply issues, the Power Ministry has petitioned the Prime Minister's Office (PMO) to intervene and settle the issue pertaining to signing of new fuel supply agreements (FSAs) and some controversial clauses in it.



The issue continues to hang fire despite the Prime Minister's Principal Secretary, Pulok Chatterjee, having held a number of meetings to sort out the mess arising out of the failure of CIL to supply adequate coal to power plants and the leading power producers petitioning the government seeking a stable coal supply regime in place.



The issue is stuck for the last two months as majority of the power producers have reservations about certain clauses, including those related to penalty, in the revised fuel supply agreement put forward by CIL.



The ball is back in the PMO's court to take a decision on the FSAs to be signed with leading power producers. Power Minister Sushil Kumar Shinde has written to the PMO seeking intervention on the issue. Mr. Shinde's communication to the PMO comes after a hectic round of discussions the Central Electricity Authority (CEA) held with various power generators on May 9 to get their views on the problems faced in signing the FSAs. Officials in the Power Ministry said that Mr. Shinde had urged the PMO to direct the Coal Ministry and CIL to sign FSAs within a month based on the 2009 format.


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Printable version | Dec 2, 2021 7:54:38 AM | https://www.thehindu.com/business/Industry/coal-supplies-power-ministry-seeks-pmos-intervention/article3418667.ece

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