CIL must not favour PSU power cos

Dec 05 2012, 00:21 IST
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Jyotiraditya Scindia, Minister of state for power Jyotiraditya Scindia, Minister of state for power
SummaryDefying the convention of patronising public sector enterprises at the expense of private firms, new power minister Jyotiraditya Scindia has sent a missive to his counterpart in the coal ministry, strongly recommending that public and private sector firms be treated on par in signing fuel supply agreements with Coal India.

while PSUs will comply with security condition only after signing the agreement. In this case the commitment provided by the PSUs prior to the issue of LoA shall be converted into security deposit.

The power ministry is concerned about the terms contained in the model FSA as it has the potential to further slow down investment in the power sector and derail capacity addition. In 11th Plan, against a target of 62,000 MW of new capacity, only about 55,000 MW was added.

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