PSERC tells Nabha power to sign fuel supply pact

Yogindra Mohan
Patiala

The Punjab State Electricity Regulatory Commission (PSERC) has directed the Nabha Power Limited (NPL) to sign the fuel supply agreement (FSA) with South Eastern Coalfields Limited (SECL).

The Commission has advised the NPL to vigorously pursue the matter with all concerned government authorities for maintaining the status quo with respect to quantity, quality, grade, and origin of coal committed as per the Letter of Assurance (LOA).

On its part the Punjab State Power Corporation Limited (PSPCL) should co-ordinate with the NPL and pursue the matter, even at highest level, with the state and the Central government.

The PSPCL had entered into an agreement with the NPL to establish, operate, maintain, generate and supply power from the power project of 2x700 MW (1400 MW) capacity at village Nalash, Rajpura.

Fuel linkage was arranged by the PSPCL before submission of bids. South Eastern Coalfields Limited (SECL) issued the Letter of Assurance (LOA) for 5.55 million tonnes per annum of coal in December 2008.

The PSPCL submitted that it had become necessary to sign the FSA as proposed by the SECL. The consequences of not signing the FSA as and when proposed by the SECL may result in coal linkage being lost in which case the project would not have any coal supply.