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GOVERNMENT OF INDIA Ministry of Coal
RAJYA SABHA UNSTARRED QUESTION NO.3271 TO BE ANSWERED ON MAY 7, 2012 Fuel Supply Agreement with Power Companies in Karnataka
3271. SHRI RAJEEV CHANDRASEKHAR:
Will the Minister of COAL be pleased to state:
(a) Whether directive has recently been issued to the Coal India Ltd (CIL) to sign fuel supply agreements with power companies in the country;
(b) If so, the details thereof;
(c) Whether CIL has signed fuel supply agreements with the power producers in Karnataka, in compliance with the directive; and
(d) If so, the details thereof and if not, the reasons therefor?
ANSWER MINISTER OF STATE IN THE MINISTRY OF COAL (SHRI PRATIK PRAKASHBAPU PATIL)
(a) & (b): The Government had decided that Coal India Limited (CIL) will sign Fuel Supply Agreements (FSAs) with the power plants identified by Central Electricity Authority/Ministry of Power that have entered into long term Power Purchase Agreements (PPAS) with Distribution Companies (DISCOMS) and have been commissioned/would get commissioned between 1.4.2009 and 31st March, 2015. It was also decided, inter-alia, that the FSAs with such power plants which have been commissioned till 31.12.2011 would be concluded by 31.3.2012. The Board of Coal India Limited (CIL) could not, however, take a final view on the implementation of these instructions even after deliberating on the matter in its various meetings. In view of the need and urgency for making adequate coal available to the power utilities and to get the instructions implemented, Ministry of Coal had to issue the Presidential Directive on 4.4.2012 for implementation of these instructions.
(c) & (d): Coal India Limited has put in place modified Fuel Supply Agreements and circulated it to all coal supplying companies so as to implement the directive. This would be applicable to all the power plants as per eligibility and featuring in the list of Thermal Power Stations furnished to Ministry of Coal by Central Electricity Authority / Ministry of Power. The model Fuel Supply Agreement is offered to all the eligible Thermal Power Stations including those located in Karnataka who are required to approach the concerned coal company to conclude the Fuel Supply Agreement.