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Timelines for signing of FSAs should be met: CCI

The Cabinet Committee on Investment (CCI) has asked that timelines for signing of fuel supply pacts for power projects of 78,000 MW capacity be met.

PTI|
Last Updated: Oct 01, 2013, 06.23 PM IST
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The Cabinet Committee on Investment (CCI) has asked that timelines for signing of fuel supply pacts for power projects of 78,000 MW capacity be met
The Cabinet Committee on Investment (CCI) has asked that timelines for signing of fuel supply pacts for power projects of 78,000 MW capacity be met
NEW DELHI: Amid continuous delays, the Cabinet Committee on Investment (CCI) has asked that timelines for signing of fuel supply pacts for power projects of 78,000 MW capacity be met.

Two deadlines set recently for signing of the fuel supply agreements by Coal India (CIL) with the power producers could not be adhered to.

"The Cabinet Committee on Investment...directed to ensure that timelines should be adhered to for signing of FSAs (Fuel Supply Agreement) for power projects of 78,000 mw capacity," according to an official document.

The document further said that the CCI even directed the Power Minister to review the progress of the power projects on daily basis with the secretaries of both Power and Coal.

Coal India has so far entered into pacts with 142 power producers. The coal PSU has to sign 173 FSAs with power companies for a total capacity of 78,000 MW, as directed by the Coal Ministry.

The Coal Ministry had earlier set a deadline of August 31 for signing of the FSAs which could not be met. Further, the second deadline of September 6 was also not achieved.

Some power producers are still reluctant to enter into fuel supply pacts as they don't have long-term power purchase agreements (PPAs) with them, which is mandatory for signing of fuel pacts.

The CIL board had on August 3 approved signing of FSAs for a capacity of 78,000 MW instead of 60,678 MW earlier.
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