It is reported that the Indian Prime Minister’s Office has convened a meeting on Friday to discuss and take a decision on the failure of Coal India Limited to sign the fuel supply agreements with power producers, decide the fate of nearly 58 captive coal blocks to various players who have been issued show cause notices and lack of fuel supply that was hurting power generation.

A high level meeting of Finance, Power, Coal, Mines and Steel Ministry and CIL officials has been convened by Principal Secretary to the Prime Minister, Mr Pulok Chatterjee, to discuss various issues impacting the coal industry.

It is learnt that CIL will make a formal presentation on the fuel supply situation for the next few years and projections on production. CIL is understood to have already conveyed to the Coal Ministry that it would not be able to adhere to the Presidential directive on supply of minimum 80%t coal to power producers under the new FSAs and that it would only be able to achieve around 66 per cent supplies.

The lack of fuel supply by CIL, despite PMO taking a number of meetings on the issue and issuing of a directive on FSAs, has badly hurt the power generation. CIL has proposed supply of around 66% for 2012-13 and 55% for the 2013-14 fiscal.

The issue of setting up of an inter ministerial panel, which will look into the reasons for delay in production from captive coal blocks and suggest measures to fast track their development amid acute shortage of the fuel , would also be taken up during the meeting.

Source - Economic Times

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