CIL to supply coal to power cos under MoU route till Jan-end
New Delhi: Coal India Limited (CIL) will provide coal till the month-end under the MoU route to power plants even as firms like NTPC are yet to ink Fuel Supply Agreement (FSA) sources said. “As the earlier deadline expired on December 31, 2012 Coal India decided to extend the deadline by another one month till January 31 for supply of coal to power firms under the MoU route,” a source close to the development said. “The supply of coal under the MoU route will be provided to all those power plants which have been commissioned as on April 1, 2009 up till now,” the source added.
An MoU is not a legally binding document but that route would be used till the issues holding up the FSA are resolved. The government had in May directed coal companies to supply fuel to power plants that have been commissioned till 2012 through the MoU route till FSA issues are resolved. “The Ministry of Coal has issued a directive to coal companies to supply coal to power plants commissioned till March 31, 2012 as well as those to be commissioned during 2012-13 through the MoU route as the FSAs are getting delayed,” the Power Ministry had said.PTI