File photo
New Delhi:
The Prime Minister's Office has convened a meeting of Coal and Power Secretaries today to discuss the issues related to the two sectors including introduction of competitive bidding for coal blocks, review of the progress made by the Inter-Ministerial Group (IMG), reforms in the power sector, price pooling formula for coal and signing of fuel supply agreements (FSA) by Coal India Limited (CIL).
The board of the CIL had last month approved the modified FSA without price-pooling with 65 per cent domestic coal and 15 per cent imported coal at cost plus basis.
"We have reviewed the modified FSA and it was approved by the board. The modified FSA, which can be signed now, will have 15 per cent imported coal component at cost plus basis," CIL Chairman and Managing Director S Narsing Rao said yesterday.
National Thermal Power Corporation (NTPC) and many power companies have refused to ink fuel supply pacts with CIL, disagreeing with introduction of new clauses, including penalty.
The modified FSA has modifications in penalty, moratorium on penalty and some changes in force majeure which were already cleared by the board earlier, the company said.
The CIL agreed to pay penalties of 1.5-40 per cent depending on the extent it fails to supply the committed quantity of coal to power plants.
So far, 29 companies have already signed the initial FSA.
The board of the CIL had last month approved the modified FSA without price-pooling with 65 per cent domestic coal and 15 per cent imported coal at cost plus basis.
"We have reviewed the modified FSA and it was approved by the board. The modified FSA, which can be signed now, will have 15 per cent imported coal component at cost plus basis," CIL Chairman and Managing Director S Narsing Rao said yesterday.
National Thermal Power Corporation (NTPC) and many power companies have refused to ink fuel supply pacts with CIL, disagreeing with introduction of new clauses, including penalty.
The modified FSA has modifications in penalty, moratorium on penalty and some changes in force majeure which were already cleared by the board earlier, the company said.
The CIL agreed to pay penalties of 1.5-40 per cent depending on the extent it fails to supply the committed quantity of coal to power plants.
So far, 29 companies have already signed the initial FSA.
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