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NTPC awaits clarity on fuel supply pact

Board may take it up at next meeting

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Press Trust of India New Delhi

State-owned NTPC is likely to seek the board approval at its next meeting for entering into the revised fuel supply pact with Coal India.

As the country's biggest power producer awaits clarity on the model pact, it did not discuss the issue at its board meeting today, sources said.

"NTPC board is likely to discuss the issue of signing fuel supply agreement [FSA] with Coal India at the next meeting, since clarity is awaited on certain aspects," said a source.

The government had last week said that most of the issues relating to FSAs have been resolved and power companies are likely to ink fuel supply pacts with CIL in a month's time.

 

Coal Minister Sriprakash Jaiswal and Power Minister Jyotiraditya Scindia had said that most of the issues related to the contentious FSAs have been resolved.

The Prime Minister's Office has directed power producers to enter into FSAs with Coal India within a month. The PMO directive on December 17 came after its November deadline for FSAs was missed amid differences over various issues including the quality of coal.

Both the ministers had said that a joint decision has been taken to ensure that there would be no "distinction" on FSAs for public and private power companies.

NTPC is among the companies that have raised concerns about the quality of coal supplied by Coal India.

As of now only 33 of the total 87 power companies in the country have entered into FSA with CIL.

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First Published: Dec 28 2012 | 9:25 PM IST

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