Files fresh notification under the Cyprus treaty unperturbed by fall in CIL stock’s dollar value

UK-based hedge fund The Children’s Investment Fund (TCI) has dropped the charges against the environment and forests ministry from its legal proceedings under the India-Cyprus investment treaty. In March, it had initiated legal proceedings against the government of India under the treaty, after the coal ministry did not respond to its concerns over coal pricing and management of state-run Coal India Ltd (CIL). While the government owns 90 per cent in CIL, TCI holds a little over one per cent.

Power companies have refused to ink fuel supply pacts with the miner due to insertion of new clauses

The Coal Ministry has asked Coal India to examine issues, including changes in penalty clause, raised by the power producers regarding the model fuel supply agreement. The move comes against the backdrop of NTPC and many power companies refusing to ink fuel supply pacts with Coal India Ltd (CIL), disagreeing with introduction of new clauses.

The coal ministry on Tuesday denied having received any report from the Comptroller and Auditor General (CAG) on irregularities to the tune of over Rs 1.80 lakh crore in coal block allocations and said that all coal blocks were allocated in a transparent manner. “The media has been asking me, but we have not received any report on the CAG’s latest version,” said coal minister Sriprakash Jaiswal when asked for a statement on reports that the CAG had toned down its assessment on irregularities from the earlier figure of Rs 10.60 lakh crore.

NEW DELHI, May 22 – Assam may be reeling under massive power shortages, but Union Power Minister is still sitting on the proposals to grant long-term coal linkages to Chandrapur and Margherita thermal power plants. Applications seeking long-term coal linkage and Letter of Assurance (LoA) for setting up 60 MW thermal power project at Chandrapur and 500 MW Margherita project were received by the Ministry of Coal and sent to Ministry of Power for recommendations.

The Rajya Sabha witnessed frequent disruptions following the Opposition uproar over CAG reportedly pointing to a loss of over Rs 1,80,000 crore to the exchequer in the allotment of coal blocks to private companies.

The Coal Minister, Mr Sriprakash Jaiswal, has been describing the findings in the draft report on allocation of coal blocks without auction as “illogical”, asking by that yardstick even water used in the hydro projects should be charged.

State-Owned Cos Left Out Of Final Report. The Comptroller and Auditor General’s final report on allocation of coal blocks between 2004 and 2009 without auction is expected to peg the value of “undue benefits” that the government extended to private entities alone at more than Rs 1.8 lakh crore, sources have indicated.

More than eight months after the government scrapped the controversial ‘no-go’ policy, which had banned mining in some areas, state-owned Coal India Ltd (CIL) is still struggling to operate its new projects located in the so-called no-go areas in the absence of a formal go-ahead from the environment ministry.

The delay is set to stem the miner’s efforts to meet new supply obligations, further aggravating the ongoing coal crisis in the country. “Since September last year, only two of our new mining projects have received clearance and, that too, outside of the no-go list.

NTPC’s reservation in signing the fuel supply agreement (FSA) with Coal India Ltd (CIL) will not impact the country’s largest power producer, as CIL will not restrict supply of fuel in the current financial year, even if the agreements are not signed.

“NTPC will continue to get coal whether FSA is signed or not, as the government has asked us to extend the same for the current year, even though memorandum of understandings expired in March,” CIL Chairman and Managing Director S Narsing Rao said.

Coal India is in no mood to make any changes to its new fuel supply agreement because it has not received any such direction from the coal ministry.
The company is yet to receive any directive or communication from the coal ministry for changing the fuel supply agreements to make it acceptable to power producers, Coal India chairman S Narsing Rao told ET.

Companies such as NTPC, Reliance Power and Tata Power, however, want to sign the old fuel supply agreement with 80% trigger level and have refrained from approaching CIL for signing FSAs.