Reported By:
| Edited By: Sumit Moitra |Source: DNA |Updated: Mar 18, 2018, 05:24 AM IST
Coal India is set to miss the deadline to sign fuel supply agreements, or FSAs, with power producers yet again.
It had missed the first deadline, of March 31, set by the Prime Minister’s Office.
And now the second deadline, of April 20, set by a Presidential directive, is also likely to lapse.
Coal India chairperson Zohra Chatterji had put up a brave face while briefing the media about the broad contours of the model FSA apparently agreed upon during Monday’s marathon board meet, claiming that they would be signed by Friday.
It has now emerged that her confidence belied the utter confusion that prevailed in the discussions.
The coal ministry, it is learnt, is not convinced the Coal India board actually approved the FSA on Monday and has asked for the minutes of the meeting. There was, in fact, high drama during much of the meeting.
“An independent director demanded that all those power companies having coal blocks shouldn’t be allowed to sign the FSA. This created confusion as several power utilities own blocks, and this condition, if accepted, would have disqualified most of them,” said an official of Coal India, refusing to identify the independent director.
The confusion heightened when the director left the meeting before it ended, apparently to catch a flight to Lucknow and Coal India officials had to cajole him to send a clarification before boarding, the official said.
All this means the model FSA would take some more time to turn into actual agreements between Coal India and the power producers.
“We are yet to receive the copy of the model fuel supply agreement, which has to be signed with our own set of customers. It is unlikely that we can do it even if we receive anytime tomorrow, the deadline set by the presidential directive,” said an official of Eastern Coalfields.
While Coal India would firm up the model FSA, it is up to its various subsidiaries like Eastern Coalfields to sign the pacts with the power plants they cater to.
Among the power producers which are waiting to sign FSAs with Coal India but own coal mines is CESC. The company’s already-completed Budge Budge phase 3 and upcoming plants at Haldia are eligible for FSAs.
However, as of Thursday evening, the company was yet to hear from Coal India. “We haven’t received any communication from Coal India for the FSAs,” said an executive director of CESC.
