Despite all the hype and the intervention at the highest levels of the government, including the Prime Minister's Office (PMO), the FSA between Coal India and NTPC remains stuck. According to a reply by the power ministry in parliament today, NTPC is not willing to sign on to some clauses in the proposed FSA that Coal India has prepared.
Also read: CIL to import 20 million tonnes of coal next fiscal
The idea was that at least 25 percent of NTPC's coal requirements i.e, both NTPC and its joint venture companies, would be met through FSA supplies with Coal India
However, as of now, that is not likely to happen. The power ministry statement as well does not provide any indication of a timeline.
The FSA stuck on some clauses like the gross calorific value (GCV)
The power ministry has remained silent on what these clauses are. In the past they had said that these are company specific matters and they haven't spoken about it. But the statement does not refer to only one clause, so perhaps there are more.
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