The Union government on 12 March 2013 informed that state-run Coal India Ltd. (CIL) signed fuel supply pacts with 56 power plants so far.
Minister of state for coal, Pratik Prakashbapu Patil in his written reply to Lok Sabha mentioned that, Coal India Ltd has signed 56 fuel supply agreements (FSAs) with the power plants as on 2 March 2013.
It is important to note that the deadline set by the Prime Minister’s Office (PMO) for signing of FSAs between CIL and power producers expired in January 2013.
Chief vigilance officer replying to a question regarding CIL’s highlighted irregularities in awarding of FSAs. CIL observed certain inadequacies in the documents of 11 cases, during verification of the documents in respect of milestone achievement of LoAs (letter of assurance). It was also affirmed by the minister that appropriate action would be taken in this regard by CIL’s subsidiaries to ensure that all due procedures are observed.
Minister of state for coal stated that there is a proposal to engage an independent third party sampling agency by CIL for consumers having FSAs.