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The Coal Ministry, on Thursday, directed coal companies to continuewith the fuel supplies to power plants, which have beencommissioned this year through the memorandum of understanding(MoU) route, till issues relating to the fuel supply agreement(FSA) are resolved. The latest government directive is likely to benefit as much as8,800 MW of electricity generation capacity that has come up in thefirst three months of 2012. This will bring relief to a largenumber of areas that are now faced with shortage of power duringthe current summer season. "The Ministry of Coal has issued a directive to coalcompanies to supply coal to power plants commissioned till March31, as well as those to be commissioned during 2012-13 through theMoU route as the FSAs are getting delayed,' the Power Ministrysaid in an official statement issued here. With this directive, thecommissioned plants would be able to generate power without facingdisruption of coal supply, it added. Tough a memorandum of understanding was not a legally bindingdocument, the route would be used till the issues regarding the FSAwere resolved, the statement added. Concerned over the delay in signing FSAs, the Power Ministry hadtaken up the issue of ensuring fuel supply to power plants with theCoal Ministry. Power Minister Sushil Kumar Shinde had evenpetitioned the Prime Minister's Office (PMO) on the issue. The statement further said the Ministry of Coal was requested toissue a directive to coal companies to ensure supply of coal topower units, which had been commissioned or were likely to becommissioned this year. The quantity of coal to be supplied tothese power plants would be decided in consultation with theCentral Electricity Authority (CEA) till the FSAs for theseprojects were signed. Most power companies have expressed their concerns over certainclauses such as those related to penalty in the revised FSA mootedby Coal India Ltd. The CEA, on Wednesday, held discussion withmajor power producers to get their views on the FSA. During their meeting with the CEA, power producers also raisedconcerns over the force majeure as well as the penalty clauses inthe new FSA. Representatives from about 30-35 power generationcompanies attended the meeting. The e-commerce company in China offers quality products such as Double Shot Molding Manufacturer , China Sand Castings, and more. For more , please visit CNC Machining Parts today!
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