Industry & Economy
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Power
Absence of contracts leading to coal shortage at power plants: CIL
Ambarish Mukherjee
New Delhi
,
April 6
THE critically low coal reserves faced by a large number of thermal power plants in the country is a result of these plants' reluctance to sign a formal Fuel Supply Agreement (FSA) with Coal India Ltd (CIL) that the latter had been insisting upon for more than two years.
The FSA, which is valid for periods ranging between three years and 20 years, assures the coal consumer of guaranteed supply from various CIL mines. The annual amount is fixed and the consumer is allowed the flexibility to spread it over the 12-month period as per requirement.
CIL officials told Business Line that till date only 15 thermal plants, out of the 72 in the country, had entered into fuel supply agreement with CIL and out of this one has already expired.
Officials said: "FSAs are necessary because we don't have enough coal to give to everyone who wants it. But those who have entered into agreements with us will obviously get the required amount on priority basis."
From among those having FSAs, the agreement of Damodar Valley Corporation's Bokaro A and Bokaro B units has already expired and is being reworked.
As of now, the 14 thermal plants are given assured supplies from various coal producing subsidiaries of CIL based on their geographical locations.
Under the existing FSAs, Mahanadi Coalfields Ltd is supplying coal to Talcher STPS and Talcher TPS, Kanihar Phase II, Simadri TPS and AP Genco. South Eastern Coalfields Ltd is supplying to NTPC Corba and BSES's Dahanur thermal plants under 10-year FSAs.
Central Coalfields Ltd was supplying to DVC under FSA that has recently expired and is in the process of being reworked. Eastern Coalfields Ltd is currently supplying under FSA to NTPC's Farakka and Kahalgaon units and also to CESC. Similarly, Western Coalfields is supplying to MSEB and KPCL's thermal plants.
Coal India officials said that earlier the FSAs were usually customised and tailor-made but now efforts are on to devise three different sets.
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